Pharma Penny Stock Under Rs 60 in Green After Credit Rating Update; Details Inside

From Rs 43.42 per share (52-week low) to Rs 51.49 per share, the stock is up by 18.60 per cent.

Today, shares of Sigachi Industries Ltd gained 2.02 per cent to Rs 51.49 per share from its previous closing of Rs 50.47 per share. The company has a market cap of over Rs 1,700 crore and has delivered good profit growth of 25 per cent CAGR over the last 5 years.

Sigachi Industries Limited has received a reaffirmation of its credit ratings by CARE Ratings Limited, reflecting the company's stable financial position and operational strength. For long-term bank facilities, the rating has been reaffirmed at CARE A-; Stable, while the long-term and short-term facilities are rated CARE A-; Stable / CARE A2. This consistent rating highlights the company’s ability to meet its financial obligations and maintain a positive outlook despite market challenges. The reaffirmation also underscores the company’s prudent financial management and growth potential, as seen in the enhanced credit limits for both long-term and short-term facilities, which now total ₹127.13 crore.

The ratings reflect Sigachi Industries' robust financial performance in FY24 and H1-FY25, as reviewed by CARE Ratings. The long-term bank facilities have been enhanced to ₹75.38 crore, while the short-term facilities now stand at ₹51.75 crore. The reaffirmation comes after an in-depth evaluation of the company’s operational performance, revenue growth, and profitability metrics. Sigachi’s ability to secure additional funding also indicates confidence in its business model and scalability. Investors and stakeholders can view this as a positive signal of financial stability, which could drive future growth and expansion opportunities for the company.

Earlier, the company submitted a CEP filing for Propafenone Hydrochloride, a critical API for treating cardiac arrhythmias. This submission demonstrates the company's commitment to European regulatory standards and quality. The global market for Propafenone Hydrochloride is substantial, projected to reach USD 2.1 billion by 2032. Sigachi's subsidiary, Trimax Biosciences, has received positive feedback from the EDQM on its CEP filing, paving the way for European exports. This achievement underscores Sigachi's dedication to excellence in manufacturing and its focus on meeting the stringent requirements of regulated markets.

About the Company

Sigachi Industries Limited, publicly listed in NSE and BSE, is a globally recognized pharmaceutical company known for its unwavering commitment to delivering high-quality excipients, vitamin mineral nutrient blends, APIs, and O&M services. With over 33 years of industry experience, Sigachi has emerged as a trusted partner for pharmaceutical and nutraceutical companies spread across 62 countries. The company's diverse product portfolio is manufactured in 5 multilocational facilities present in Telangana, Gujarat and Karnataka which hold global standard certifications. Being headquartered in Hyderabad, Sigachi Industries Limited has subsidiaries in the US and UAE.

The company announced positive Quarterly Results (Q2FY25) and half-yearly results (FY24) for the financial year 2024. According to quarterly results, revenue increased by 38.10 per cent to Rs 137 crore, EBITDA increased by 36.91 per cent to Rs 29.3 crore and PAT increased by 39.07 per cent to Rs 21 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, revenue increased by 26.53 per cent to Rs 232.7 crore, EBITDA increased by 33.33 per cent to Rs 50.40 crore and PAT increased by 29.61 per cent to Rs 33.7 crore in H1FY25 compared to H1FY24.

From Rs 43.42 per share (52-week low) to Rs 51.49 per share, the stock is up by 18.60 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.