High Beta Low Price stock: Nectar Life soared more than 51 per cent in one month
On Thursday when frontline indices cracked along with the broader markets, Nectar Lifescience Ltd (NLL) gained more than 7 per cent in the last closing hour of the session.
Sensex and broader markets have shown weakness in past couple of trading sessions with Sensex slipping as much as 1.08 per cent or 573 points from its all-time highs of 52869 it made for itself on 15th of June.
Very few stocks have managed to stay in green when the markets have shown weakness in past three sessions. Nectar Life is one exception where the stock has managed to gain in weak market conditions. On Thursday when frontline indices cracked along with the broader markets, Nectar Lifescience Ltd (NLL) gained more than 7 per cent in the last closing hour of the session.
The stock has more than doubled in three months and is up by more than 81 per cent in one year. In past one month alone the stock has gained by more than 51 per cent and is catching investors’ attention. The 52 week high/low for the stock is 43.40 / 16.15. The financials of the company have not been healthy as the company has been spending a large sum of its cash flows on R&D expense. The company’s revenue during Financial Year (‘FY’) 2019-20 stood at INR 2,639/- Crores against 3115/- Crores in the previous year recording a decline of 15%. This decline is purely on account of Menthol division due to adverse Market Conditions and impact of Covid19. The demand for its major product i.e. API’s are very robust as some of these molecules are used post Covid follow up treatment to avoid bacterial infection.
NLL has developed fully integrated sustainable production systems to manufacture high quality Cephalosporin intermediates, –APIs and Formulations to meet the diverse requirements of its customer base in India and over 90 countries worldwide.NLL has transformed itself from being a small Domestic API player to one of the most integrated player in the Global Cephalosporins Industry within Anti Infective Therapeutic segment.
NLL has an advantage of capacity amongst its competitors and is also leading in global capacity for some of the Cephalosporin Molecules, NLL is one of the leading manufacturers of Cephalosporin range of products possessing core strength in Manufacturing (Both oral and Sterile API’s) with increasing the number of molecules in its bucket with a strong R&D and is also one of the few companies in India possessing both Lyophilisation and Crystallization facilities. NLL has state of the art facilities in North India. NLL has emerged as a leader in the Menthol Arena. NLL is also a global leader in manufacturing Pharmaceutical Grade Menthol.