Shares of this Ayurvedic healthcare company surged nearly 10 percent on Monday (NASDAQ:MNDY) after the company reported a 47 percent YoY increase in net profit, along with strong revenue growth in its latest quarterly results.
Share Price Movement
During Monday’s trading session, Jeena Sikho Lifecare Ltd’s (NS:JEEN) share price reached an intra-day high of Rs.1,870.00 apiece, rising 9.96 percent from the previous close of Rs.1,706.30 apiece.
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Rationale for Rise
The strong bullish movement in Jeena Sikho Lifecare Ltd’s stock price resulted from substantial revenue and net profit growth in the latest quarter. In its recent filing for the quarter ending September 2024, the company reported a 36 percent increase in revenue, reaching Rs.214.2 crore compared to Rs.157.3 crore in Q2 FY24. Sequentially, revenue also rose by 28 percent from Rs.167.0 crore in Q1 FY25.
During the same period, Jeena Sikho Lifecare posted a significant 47 percent increase in net profits to Rs.46.87 crore in Q2 FY25 from Rs.31.82 crore in Q2 FY24 and 26 percent from Rs.37.37 crore in Q1 FY25.
In terms of return ratios, return on capital employed (ROCE) is currently at 57.9 percent, while return on equity (ROE) is at 42.7 percent. The company has a strong current ratio of 5.10 and a nil low debt-to-equity ratio.
Future Plans
The company aims to achieve revenue of approximately Rs.450 crores in the coming year. It plans to expand its capacity by adding 500 new beds, increasing the total bed count to 1800.
Over the next three years, the company targets doubling its bed capacity to 3000, with a further goal of surpassing 4000 beds within five years. Jeena Sikho Lifecare Ltd. is also focused on raising occupancy levels to drive profit growth.
Revenue Segments
The medicine business of Jeena Sikho Lifecare Ltd. currently achieves a gross margin of approximately 85 percent, with a net margin of 22 percent recorded last year. The company plans to introduce new OTC products to drive revenue growth further. With effective cost management and strategic revenue initiatives, Jeena Sikho targets a PAT of over 25 percent in the coming year.
About the Company
Jeena Sikho Lifecare Limited, founded by Acharya Manish Grover in 2017, is a leading Ayurvedic healthcare provider in India. Originally a private entity, it became a public limited company in 2021. Based in Zirakpur, Punjab, Jeena Sikho offers an extensive portfolio of Ayurvedic products and services, featuring over 250 herbal solutions.
Written by – Siddesh S Raskar
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