USD 5,40,00,000 revenue aim by 2029 in this multibagger penny stock: This small-cap pharma company announces joint venture with iMass Investment in the UAE

Kiran Shroff
USD 5,40,00,000 revenue aim by 2029 in this multibagger penny stock: This small-cap pharma company announces joint venture with iMass Investment in the UAE

From Rs 22 per share (52-week low) to Rs 94.40 per share (52-week high), the stock gave multibagger returns of 329 per cent.

Sigachi MENA FZCO, a wholly owned subsidiary of Sigachi Industries Limited and iConsult Trading Consultancy LLC, a wholly owned subsidiary of iMass Investments have announced the formation of a joint venture (JV), Sigachi Global, to enter the growing UAE food and pharma market.

Sigachi Global will create separate entities to manage Sigachi’s core verticals viz. pharma (excipients and APIs), food & nutrition and operations & management (O&M) as required. Sigachi MENA FZCO will hold a 75 per cent stake and iConsult shall hold 25 per cent in the JV. Sigachi Global is estimated to have revenues of USD 5,40,00,000 by 2029.

The joint venture will capitalize on the complementary capabilities of both companies, combining iMass/iConsult's market knowledge and Sigachi's cutting-edge technology to deliver superior products and services to customers in the GCC.

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.

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Today, shares of Sigachi Industries surged 5.01 per cent and traded at an all-time high and fresh 52-week high of Rs 94.40 per share from its previous closing of Rs 89.89 per share. The company has a market cap of over Rs 3,000 crore and has delivered good profit growth of 45 per cent CAGR over the last 5 years.  

The company announced stellar Quarterly Results (Q3FY24) and nine-month results (9MFY24) for the financial year 2024. According to quarterly results, revenue increased by 61.2 per cent to Rs 110.9 crore, EBITDA increased by 61.4 per cent to Rs 22.6 crore, PBT increased by 60.2 per cent to Rs 19.7 crore and PAT increased by 65.3 per cent to Rs 16.2 crore in Q3FY24 compared to Q3FY24. According to nine-month results, revenue increased by 28.4 per cent to Rs 294.8 crore, EBITDA increased by 29.7 per cent to Rs 60.3 crore, PBT increased by 19 per cent to Rs 52.5 crore and PAT increased by 16 per cent to Rs 42 crore in 9MFY24 compared to 9MFY24.

In December 2023, Foreign Institutional Investors (FIIs) bought 27,73,291 shares of this company and increased their stake to 1.82 per cent from 0.95 per cent in September 2023. The company ex-traded the stock split of equity shares from Rs 10 to Rs 1 on October 09, 2023.

From Rs 22 per share (52-week low) to Rs 94.40 per share (52-week high), the stock gave multibagger returns of 329 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.

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