This low PE micro-cap pharma stock witnessed a jump of over 800 per cent in net profit; will it hit upper circuit on Tuesday? Know here!

Karan Dsij
/ Categories: Trending, Mindshare
This low PE micro-cap pharma stock witnessed a jump of over 800 per cent in net profit; will it hit upper circuit on Tuesday? Know here!

The stock has a market cap of Rs 151 crore and the stock trades at a PE multiple of 8.79.

Samrat Pharmachem Limited was incorporated on June 16th, 1992 at Ankleshwar in Gujarat State of India by Mr. Lalit Mehta and Mr. Rajesh Mehta. The Company commenced operations by acquiring factory land in Ankleshwar. The founders of the company Mr. Lalit Mehta and Mr. Rajesh Mehta decided to focus on “IODINE” as the key ingredient for all their products with a vision to become the King in Iodine Chemistry.

The Company decided to accelerate their growth by adding new products & acquiring more land besides its existing setup. The Company became a major supplier of Iodine Derivatives to the Indian and Foreign Market.

Through cost effective manufacturing capabilities and loyal customers, the Company also entered new industries like Salt, Animal Feed, Textile & Tyre Cord Manufacturing segment. Today, Samrat Pharmachem has evolved into a knowledge driven Company manufacturing pharmaceutical ingredient products. It is R&D focused and has a multi-product portfolio with a state of the art and manufacturing facility in Ankleshwar.

The stock has jumped over 100 per cent in the last one year and it has turned out to be a multibagger, meanwhile, the last three years performance would leave you spellbound as the stock has delivered eye-popping returns of 671 per cent.

The stock has come out with its blockbuster financial results for the quarter ended June 30, 2022.

Here are some of the key highlights for Q1FY23:

The company reported much-improved quarterly performance in Q1FY23 by registering astonishing healthy growth in the top-line as well as the bottom line.

The total revenue from operations for the quarter ended June 2022 stood at Rs 86.51 crore, up by 83 per cent YoY while the net profit skyrocketed to Rs 9.37 crore with an eye-popping growth of 882 per cent on a YoY basis. The net profit of the company also grew sequentially from Rs 6.99 crore to Rs 9.37 crore i.e., up by nearly 34 per cent.  

The stock has a market cap of Rs 151 crore and the stock trades at a PE multiple of 8.79.

The stock’s 52-week high stands at Rs 578 and currently it trades around Rs 489 which translates to a discount of Rs 15 per cent from its 52-week high.

Samrat Pharmachem exports its finished products across the globe. Their customers include premium multi-national companies with multiple facilities approved by leading regulatory agencies such as USFDA, EU GMP, UK MHRA, South Africa-MCC, Health Canada, WHO and Brazil ANVISA, Samrat Pharmachem makes use of in-house R&D along with a team of technical experts in the field of Iodine to offer widest range of derivatives to its customers.

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