Upper circuit stock: Bafna Pharma continues upward surge

The sentiment is positive for pharma stocks and small-cap stocks. The micro-cap stocks have also shown good traction, both in terms of share price returns as well as earnings improvement.

Bafna Pharmaceuticals is one such stock that is gaining from the broader positive momentum in both, the pharma sector as well as the micro-cap segment. The stock has gained more than 161 per cent in the last one year. Meanwhile, it went up by 27.44 per cent in the last one month.

The stock has a market cap of Rs 1.97 crore (FF) as per BSE. The company has reported outstanding results in the June quarter. The sales improved to Rs 16.70 crore from Rs 13.13 crore, as compared to the previous quarter thus, recording a growth of 26 per cent. The net profits were declared to be Rs 1.81 crore versus a loss of Rs 0.16 crore in the previous crore. The net profit margins improved to 10.85 from a negative of 1.20 per cent. EPS for the company stands at Rs 7.66 per share, which stood at Rs -0.66 per share in the previous quarter. Recently, the promoter has increased the shareholding by almost 66 per cent while the company has also reduced the debts, which triggered the positive sentiment in the underlying.

Bafna Pharma is an EU-GMP, UK-MHRA, TGA Australia accredited facility in Non-Beta-lactam solid oral dosage forms, providing service by supplying hi-end pharmaceutical formulations to regulated markets of UK, Europe & Australia, apart from the emerging markets such as Sri Lanka, Africa, and CIS countries, etc.