Don’t miss action in this small-cap pharma stock that announced stock split after reporting a 36 per cent jump in net profit; know the record date!

The stock is up by 45 per cent in just 3 months whereas the BSE Sensex Index is 5.97 per cent.

Sigachi Industries Ltd (SIL), one of the largest manufacturers of Microcrystalline Cellulose worldwide announced that the Board of Directors of the company have approved a stock split of existing 1 equity share of a face value of Rs 10 each into 10 equity shares of the face value of Rs 1 each. The company fixed the record date as Monday, October 09, 2023.

Earlier the company reported stellar quarter results. Here are the details:

• Total Revenue stood at Rs 84.70 crore, up 17 per cent over Q4FY23. 
• Profit before tax stood at Rs 14.71 crore, up 42 per cent over Q4FY23.  
• Profit After Tax of Rs 10.86 crore, up 36 per cent over Q4FY23.  
• The EPS for Q1FY24 is Rs 3.54 whereas in Q4FY23 was Rs 2.38, an increase of 48.74 per cent.  

Sigachi Industries was incorporated in 1989. It is engaged in the manufacturing of Microcrystalline Cellulose (MCC) which is widely used as an excipient for finished dosages in the pharmaceutical industry. The shares of the company have a PE of 26.1x, a ROE of 18 per cent and an ROCE of 20 per cent.

The company has a market cap of Rs 1,087 and has delivered good profit growth of 44.50 per cent CAGR over the last 5 years. The net sales increased by 20.80 per cent to Rs 302 crore and net profit increased by 10 per cent to Rs 44 crore in FY23 over FY22.

On Friday, shares of Sigachi Industries plunged 2.25 per cent to Rs 353.85 per share from its previous closing of Rs 362 per share. The stock’s 52-week high is Rs 390 and its 52-week low is Rs 220.

The stock is up by 45 per cent in just 3 months whereas the BSE Sensex Index is 5.97 per cent. Investors should keep an eye on this Small-Cap pharma stock.

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