Multibagger stock: Aarti Drugs locks in at upper circuit

On Monday, the shares of Aarti Drugs locked in at its upper circuit of 5 per cent at Rs 850.60 per share. The shares of Aarti Drugs locked in at its upper circuit consecutively for the third trading session thus, making this, its longest gaining streak of around 15.75 per cent in a month.

The stock is said to be a multibagger stock in the times of the Coronavirus crisis as it has gained by more than 600 per cent since March 2020. The stock has sky-rocketed by almost 625 per cent, recovering from its 52-week low of Rs 105.56 per share made on March 19, 2020. Since then, it has continued to have a strong upward trend. Thus, those investors, who entered in this quality stock in January 2020, have received huge appreciable returns.

The company had recently announced of bonus issue and had fixed October 1, 2020, as the record date to determine the eligible shareholders entitled to receive bonus shares. Outlining the details, three bonus equity shares would be issued for each share held (3:1).

Aarti Drugs reported a strong financial performance for Q1FY21 with a 280.62 per cent rise in net profit to Rs 85.45 crore for Q1FY21 against the net profit of Rs 22.45 crore gained in Q1FY20.

Aarti Drugs is a pharmaceutical company, having a strong presence in the anti-diarrhea, anti-inflammatory therapeutic groups. The company is involved in the manufacturing of vitamins, anti-arthritis, anti-fungal, antibiotics, ACE inhibitors as well as anti-diabetic, anti-cholinergic, sedatives, and anti-depressant drugs.

The stock of the company has gained by more than 20 per cent in a month and by almost 450 per cent on a YTD basis. The stock touched its 52-week high of Rs 931.13 per share on August 28, 2020.