Ashish Kacholia's Hidden Gem: Small-Cap Pharma Stock Receives European Export Approval!

The stock gave multibagger returns of 270 per cent in 5 years whereas BSE small-cap index is up by 66 per cent.

IOL Chemicals and Pharmaceuticals Limited (IOL), a leading manufacturer of pharmaceutical (APIs) and specialty chemicals, has received the European Directorate for the Quality of Medicines & HealthCare’s (EDQM) Certificate of Suitability (CEP) to export Paracetamol to the European Market.   

The certification issued by the EDQM verifies the compliance of pharmaceutical substances and with this backing, IOL will now be able to export Paracetamol to the European continent. At present, IOL has a total capacity of 3,600 tonnes to produce Paracetamol. IOL is the world’s largest producer of Ibuprofen API with a 33 per cent market share globally.  

IOL Chemicals & Pharmaceuticals Ltd is a leading pharmaceutical (APIs) company and is a significant player in the speciality chemicals space. It serves the domestic and export market.   

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Talking about the financials, this BSE small-cap company has a market cap of Rs 2,391.37 crore. The company reported positive numbers in its Quarterly Results and annual results. The net sales rose by 3 per cent and net profit skyrocketed 133 per cent in Q4FY23 over Q4FY22. In FY23, net sales rose by 11 per cent over FY22.   

Today, shares of IOL Chemicals & Pharmaceuticals jumped 1.76 per cent to Rs 402 per share. The stock has a 52-week high of Rs 441.55 and a 52-week low of Rs 272.20.

The stock gave multibagger returns of 270 per cent in 5 years whereas BSE small-cap index is up by 66 per cent. Investors should keep an eye on this pharma stock.