This news helped Aarti Drugs to surge 11 per cent on August 17
Aarti Drugs Ltd is involved in the manufacturing and selling of Active Pharmaceutical Ingredients, Pharma Intermediates, Specialty Chemicals, and Formulations.
The fall in the price of crude oil has triggered positive sentiment in the market. The Indian stock market is trading in the green for the fourth consecutive session. On August 17, at 1 pm, S&P BSE Sensex is trading at 60236.77 with a gain of 0.66 per cent.
Regarding sectoral performance, Utilities and Power are the Top Gainers, while IT remains the top loser for the day. Talking about stock-specific action, Aarti Drugs is in the news and is trading at Rs 472.65, 11.62 per cent higher from its previous close.
The shares of Aarti Drugs Ltd are rallying due to news regarding imposing anti-dumping duty on Chinese pharma companies to sell Ofloxacin and other intermediates in the Indian market.
Aarti Drugs Ltd had expressed concerns to the DGTR (Directorate General of Trade Remedies) about Chinese pharma dumping excess quantities of Ofloxacin and other intermediates in the Indian market, causing losses for domestic pharma companies.
Following Aarti Drugs' concerns, DGTR surveyed from April 1, 2020, to March 31, 2021, and discovered that imports of these products increased 72 times in the same year. As a result, the DGTR proposed imposing anti-dumping duties on Ofloxacin and other related intermediates entering the Indian market from China to protect the interests of domestic pharmaceutical companies.
The proposal also includes a plan to impose an anti-dumping duty for the next five years, with the price range for these pharma raw materials set at USD 0.5 - USD 7.
Aarti Drugs Ltd produces and sells Active Pharmaceutical Ingredients, Pharma Intermediates, Specialty Chemicals, and Formulations. The company has a presence in more than 100 countries worldwide. As per the FY22 period ending, 63 per cent of the revenue is contributed by the domestic business.
The stock is trading at a TTM PE of 20.3x.