During Thursday’s trading session, the shares of a leading provider of ayurvedic, herbal & cosmetics healthcare and personal care products surged 7.5 percent to Rs. 24.1 on BSE, after the company received export orders worth Rs. 33.35 lakhs from a US-based company.
With a market capitalisation of Rs. 47.6 crores, at 11:26 a.m., the shares of Veerhealth Care Limited were trading in the green at Rs. 23.78, up by 6.07 percent, as against its previous closing price of Rs. 22.42.
Is Veerhealth Care a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
What’s the News:
According to the latest regulatory filings with the BSE, Veerhealth Care Limited received a new export order valued at $40111, or nearly Rs. 33.35 lakhs, from an existing top institutional supplier company in the United States of America (USA).
This order involves the manufacture and supply of oral care products, with a completion period of 3 months.
To date, Veerhealth Care has received total orders of $521,525.12, or nearly Rs. 4.33 crores. The company has already manufactured and shipped orders worth $350,000 (about Rs. 2.94 crores), with the remaining orders expected to be shipped by 30th October 2024.
Previous Orders:
On 8th August, Veerhealth Care Limited announced initial expansion plans, which involve acquiring an additional 27,451 sq. ft. of land adjacent to its current manufacturing facility in Vapi, Gujarat.
This new acquisition will facilitate the establishment of new manufacturing lines that comply with CGMP norms as required by the USFDA, in response to growing demand from the USA, East & North African markets.
Following this expansion, the total plot area will increase to 58,623 sq. ft., combining the existing 31,172 sq. ft. with the newly acquired 27,451 sq. ft.
The total constructed area will expand to 90,000 sq. ft., with 60,000 sq. ft. from the current facility and 30,000 sq. ft. from the new construction.
On 13th August, the company announced receiving an export order for a new toothpaste variant valued at $101,680 (or nearly Rs. 84 lakhs), from a leading institutional supplier in the USA.
With this order, the company secured orders for all toothpaste variants marketed by the client in the USA.
Financials:
The company experienced a decline in its revenue from operations, showing a year-on-year fall of around 42.7 percent from Rs. 3.6 crores in Q1 FY24 to Rs. 2.06 crores in Q1 FY25.
Similarly, its net profit decreased during the same period from Rs. 0.34 crores to Rs. 0.12 crores, indicating a decline of nearly 64.7 percent YoY.
VeerHealth Care has announced a Rs. 33 crore expansion project aimed to enhance healthcare solutions, covering land acquisition, building construction, procurement of machinery, and infrastructure development. To finance this expansion, the company plans to raise Rs. 8 crores through bank borrowings.
Stock Performance
In the previous six months, the stock has delivered positive returns of nearly 15 percent, as well as around 15 percent returns in one year. So far in 2024, the shares of Veerhealth Care have given about 11.1 percent of positive returns.
About the Company:
VeerHealth Care Limited is engaged in the business of manufacturing and supply of ayurvedic medicines, oral care products and personal care products under the brand ‘Ayuveer’.
Some of the company’s products include health care, oral care & personal care products like shampoos, conditioners, lip balms, creams, scrubs, bath salts, shower gels, lotions, ayurvedic toothpaste and much more under ayurvedic & cosmetic license.
The company was originally incorporated in 1992 as Niyati Leasing Limited with the purpose of starting a business in investment and finance, but in 2013, the management decided to diversify the business activities and changed its main object to the Pharma sector.
Written by Shivani Singh
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