This micro-cap pharma stock is solving the anti-ageing problem; do you have it?

The stock hit the upper circuit today and is trading at an all-time high price.

Shares of Nitta Gelatin India Ltd have surged 20 per cent and closed at Rs 676.95. The stock opened at Rs 665 and made an intraday high and low of Rs 676.95 and Rs 628.4, respectively. The stock rallied as the company, through the exchange filings, shared its capacity expansion plans. 

Nitta Gelatin India Limited is a pharmaceutical company primarily involved in the business of manufacturing gelatin and collagen peptide. 

Gelatin contains proteins & antioxidants, which help protect the cells in the body and can support the health of the digestive system, bones, skin, joints, and more. Gelatin has applications in the pharmaceutical & food industry. 

Collagen peptide is a form of protein, which is derived from collagen, holds our body together, and is found across our body i.e. skin, bones, cartilage, blood vessels, and internal organs. As we age, our natural collagen production slows down, causing skin wrinkles, stiff joints, brittle nails, and dull hair. Taking collagen supplements daily helps to reduce the ageing pace of the body.  

The benefits of collagen include: 

Anti-ageing wound healing, improves skin, nails, and hair, strengthens bones, helps tendons, ligaments, and joints maintain digestive health, increases muscle mass and aids weight loss. 

In the recent filing, the company disclosed that it will expand the manufacturing capacity of Collagen peptide from its existing capacity of 450 MT per year to 1000 MT per year within the next 21 months. 

The company has a market capitalisation of Rs 614 crore and is trading at a PE multiple of 16x.