Ashish Kacholia spotlight: Board approves allotment of 3,70,000 shares in multibagger pharma micro-cap; company secures purchase commitment from first public sector drug manufacturer!

The stock has proven its mettle with a staggering 333.59 per cent multibagger return in the past year, firmly establishing itself as a micro-cap gem with a market cap of Rs 170 crore

As the Indian markets kick-start the week with renewed fervor, the bulls are once again orchestrating a market symphony, with Nifty scaling new heights and breaching the 21,450 mark by midweek. While the majority of sectors paint the trading landscape in shades of green, the Nifty IT sector stands as a lone ranger, experiencing a modest dip of 0.06 per cent.

In this vibrant scenario, where optimism courses through the veins of investors, one stock stands out in the limelight – Sanjivani Parenteral Ltd. This pharmaceutical juggernaut has not only surged by an impressive 2 per cent, triggering an upper circuit, but it has also clinched a fresh 52-week high at Rs 169.80.

Sanjivani Parenteral Ltd. operates with finesse from its two state-of-the-art manufacturing plants in Navi Mumbai and Dehradun. Specializing in the production and distribution of high-quality parenteral and oral solid products, the company caters to major therapeutic areas, including CNS, CVS, Antibiotics, Gastroenterological, Anti-Diabetics, and Anti-Allergic, all supported by a robust R&D setup.

In the financial arena, Q2FY24 reports unveil a dynamic performance, with a staggering 73.3 per cent of revenue stemming from exports and the remaining 26.7 percent from the domestic market. Notably, the revenue distribution across product categories reveals injections as the revenue champion, commanding an impressive 60.1 percent, followed closely by tablets at 38.7 per cent.

With a keen eye on the future, Sanjivani Parenteral Ltd. has four exciting products in the pipeline – Infusion Injectables, IV sets (medical device), Pre-filled syringe-enoxaparin, and Complex injectables with a focus on long-acting emulsions.

The company's strategic collaboration with Hindustan Antibiotics Ltd. further amplifies its growth trajectory. An agreement has been inked for the manufacturing of IV formulations and IV sets, with a confirmed purchase commitment. The plant, slated for commissioning by Q3FY25 in Pune, is expected to boast a capacity of 50 lakh bottles of IV fluids and 10 lakh IV sets per month.

In a significant move, the board of Sanjivani Parenteral Ltd. convened on December 25, 2023, approving the issuance of 600,000 convertible warrants to promoter Mr. Ashwani Khemka. Priced at Rs 135.10 per warrant, the transaction allows for a 25 per cent upfront payment, with the remaining 75 per cent payable upon conversion into equity shares within 18 months.

Further fortifying its financial standing, the board also greenlit preferential allotment of 16,86,000 equity shares at Rs 135.10 per share, amounting to Rs 22.77 crores. Notable investors in this round include India Bridge Fund, Mr. Ashish Kacholia, and Mrs. Monika Garware.

The stock has proven its mettle with a staggering 333.59 per cent multibagger return in the past year, firmly establishing itself as a micro-cap gem with a market cap of Rs 170 crore. As investors eagerly await the Extraordinary General Meeting scheduled for January 18, 2024, Sanjivani Parenteral Ltd. seems poised for an exciting chapter in its growth saga. As the market heats up, this pharmaceutical star is one to watch, shining brightly in the ever-evolving narrative of India's dynamic financial landscape.

Disclaimer: The article is for informational purposes only and not investment advice