Penny Stock Under Rs 50: Company acquired 100% stake in Cibachem General Trading L.L.C & Premises taken on rent for setting up new R&D centre in Dehradun
The stock gave multibagger returns of 658 per cent from its 52-week low of Rs 5.82 per share.
On Friday, shares of Sudarshan Pharma Industries Ltd plunged 2 per cent to Rs 44.14 per share from its previous closing of Rs 45.04 per share. The stock’s 52-week high is Rs 53.50 per share while its 52-week low is Rs 5.82 per share.
Update 1: In response, the Company clarifies that it entered into a Rent Agreement on December 29, 2024, with Daundi Biological Private Limited. This 5-year agreement facilitates the establishment of a new Research & Development formulation centre in Dehradun, Uttarakhand, India. The Company anticipates commencing operations at this centre in March 2025. This disclosure provides details about the parties involved, the agreement's purpose, and significant terms, including the commencement and duration of the 5-year lease.
Update 2: The Board of Directors' approval to acquire 300 shares of Cibachem General Trading L.L.C., Dubai, United Arab Emirates, on January 15, 2025. Each share has a face value of AED 1,000, representing 100 per cent of Cibachem's paid-up share capital. The total acquisition cost is Rs 25,00,000 or its equivalent in UAE Dirhams (AED). Upon completion, Cibachem will become a wholly owned subsidiary of the Company.
Cibachem General Trading L.L.C., established in 2013 under commercial license no. 696207, is engaged in general trading activities within the scope of Federal Law No. 8 of 1984. This acquisition is not considered a related party transaction as the promoters or group companies have no interest in Cibachem. The acquisition is expected to expand the Company's customer base in the Middle East Region. The Company will seek approval from the Reserve Bank of India under the Foreign Exchange Management Act, 1999, for this acquisition. The transaction is expected to be completed by March 31, 2025.
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About the Company
Sudarshan Pharma Industries Limited (SPIL), established in 2008 and headquartered in Mumbai, is a prominent contract manufacturer of generic formulations. Operating across diverse segments, including speciality chemicals, intermediates, APIs, pharmaceutical and formulation generics, and bulk supply, SPIL caters to a wide range of institutions and healthcare organizations. Beyond its contract manufacturing services, SPIL has ventured into branded products through its Vimac Healthcare division. A significant portion of its product portfolio, consisting of 56 out of 96 items, is registered under the "R" trademark. Furthermore, SPIL collaborates with renowned Indian companies and institutional clients, offering contract manufacturing services for pharmaceutical formulations and medicines.
On November 22, 2023, the shares of the company ex-traded sub-division /stock split of the company’s 1 (one) equity share having a face value of R 10 each fully paid-up, into 10 equity shares of the company having a face value of Re 1 each fully paid-up.
The company has a market cap of over Rs 1,000 crore and has delivered good profit growth of 37 per cent CAGR over the last 5 years. The stock gave multibagger returns of 658 per cent from its 52-week low of Rs 5.82 per share. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.