Aarti Drugs zooms nearly 10 per cent after board approves buyback worth Rs 60 crore

The board of Aarti Drugs proposed to buy back up to 6 lakh equity shares of the company at Rs 1,000 per share. The aggregate consideration of the buyback shall not exceed Rs 60 crore.   

The buyback is equivalent to 0.64 per cent of the total paid-up equity share capital of the company. The record date for the proposed buyback is April 1, 2021. 

Reacting to this, the company’s stock increased by 14.92 per cent on Friday and made an intraday high of Rs 785 per share in the afternoon session.  

Besides, the company reported a net profit of Rs 68.03 crore in Q3FY21, an increase of 144.89 per cent. It had reported a profit of Rs 27.78 crore in Q3FY20. The company reported net sales of Rs 530.25 crore for Q3FY21, an increase of 11.98 per cent as against the net sales of Rs 473.51 crore for Q3FY20.  

Aarti Drugs is engaged in the manufacturing of active pharmaceutical ingredients (APIs), pharma intermediates, speciality chemicals and produces formulations with its wholly-owned subsidiary, Pinnacle Life Science Private Limited.  

According to BSE data, the stock traded at a P/E multiple of 24.11 and a price-to-book ratio of 8.33. The stock has a 52-week high and a 52-week low of Rs 1,025 and Rs 105.56, respectively.  

At the time of market closing on Friday, the stock of the company was trading at Rs 749.40, up by 9.71 per cent on BSE.