Marksans Pharma shares surged 16% today. Here's why
Marksans Pharma shares climbed 15.73 per cent to hit a high of Rs 217.40 on BSE. The scrip has climbed 33.45 per cent year-to-date and 88 per cent in the past one year.
- Aug 14, 2024,
- Updated Aug 14, 2024 2:23 PM IST
Shares of Marksans Pharma Ltd climbed 16 per cent in Wednesday's trade following the smallcap company's strong June quarter earnings and positive management commentary. The company reported growth of 18 per cent in sales, 25.9 per cent in Ebitda and 26.5 per cent in profit after tax (PAT). The growth was supported by increase in share from existing customers and new launches, said Managing Director Mark Saldanha.
Saldanha explained: "We experienced favorable raw material prices, however surge in freight costs continue. The shipments from the new facility have commenced to our key markets, and with that we remain optimistic for a stronger performance in the coming quarters, and our journey towards achieving the next revenue goal of Rs. 3,000 crore over the next two years.”
Following the quarter results, the stock climbed 15.73 per cent to hit a high of Rs 217.40 on BSE. The scrip has climbed 33.45 per cent year-to-date and 88 per cent in the past one year.
Operating revenue came in at Rs 590.60 crore, up 18.1 per cent. Gross profit stood at Rs 328.80 crore, up 27.8 per cent YoY with a gross margin expansion of 418 basis points to 55.7 per cent. Profit after tax stood at Rs 89.10 crore.
Marksans Pharma said its US & North America Formulation business grew 29.8 per cent YoY at Rs 250.9 crore in Q1, led by incremental revenues from new product launches, and increase in the share of existing customers. It said 32 products are in the pipeline, of which 20 are oral solids and 12 are ointments and creams. Within oral solids, 4 are Softgels, Marksans Pharma said.
Revenue from the European markets came in at Rs 251.5 crore, up 11.3 per cent. Marksans said it is planning for 34 new filings over next three years. In addition, 16 products are already filed and awaiting approval.
Meanwhile, the stock also gained as its wholly-owned subsidiary Relonchem has received Marketing Authorization for the product Levonorgestrel 1.5 mg Tablets from UK MHRA.
Levonorgestrel, also known as the morning-after pill, is a first-line oral emergency contraceptive pill. It is to be used within 72 hours of unprotected sexual intercourse or when a presumed contraceptive failure has occurred, Marksans Pharma said in a BSE filing.
Shares of Marksans Pharma Ltd climbed 16 per cent in Wednesday's trade following the smallcap company's strong June quarter earnings and positive management commentary. The company reported growth of 18 per cent in sales, 25.9 per cent in Ebitda and 26.5 per cent in profit after tax (PAT). The growth was supported by increase in share from existing customers and new launches, said Managing Director Mark Saldanha.
Saldanha explained: "We experienced favorable raw material prices, however surge in freight costs continue. The shipments from the new facility have commenced to our key markets, and with that we remain optimistic for a stronger performance in the coming quarters, and our journey towards achieving the next revenue goal of Rs. 3,000 crore over the next two years.”
Following the quarter results, the stock climbed 15.73 per cent to hit a high of Rs 217.40 on BSE. The scrip has climbed 33.45 per cent year-to-date and 88 per cent in the past one year.
Operating revenue came in at Rs 590.60 crore, up 18.1 per cent. Gross profit stood at Rs 328.80 crore, up 27.8 per cent YoY with a gross margin expansion of 418 basis points to 55.7 per cent. Profit after tax stood at Rs 89.10 crore.
Marksans Pharma said its US & North America Formulation business grew 29.8 per cent YoY at Rs 250.9 crore in Q1, led by incremental revenues from new product launches, and increase in the share of existing customers. It said 32 products are in the pipeline, of which 20 are oral solids and 12 are ointments and creams. Within oral solids, 4 are Softgels, Marksans Pharma said.
Revenue from the European markets came in at Rs 251.5 crore, up 11.3 per cent. Marksans said it is planning for 34 new filings over next three years. In addition, 16 products are already filed and awaiting approval.
Meanwhile, the stock also gained as its wholly-owned subsidiary Relonchem has received Marketing Authorization for the product Levonorgestrel 1.5 mg Tablets from UK MHRA.
Levonorgestrel, also known as the morning-after pill, is a first-line oral emergency contraceptive pill. It is to be used within 72 hours of unprotected sexual intercourse or when a presumed contraceptive failure has occurred, Marksans Pharma said in a BSE filing.