Shares of this small-cap pharma stock surged 6 percent on Friday morning after the company reported a 38 percent YoY increase in net profit and strong revenue growth in its latest quarterly results.
Share Price Variation
In Friday’s trading session, the share price of Emcure Pharmaceuticals Ltd (NS:EMCU) reached an intra-day high of Rs.1,525.00 per share, rising nearly 6 percent from its previous close of Rs.1,439.80 apiece. The shares have retreated since then and currently trading at Rs.1,420.80 per share.
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Financial Performance
Emcure Pharmaceuticals Ltd’s stock price surged due to stable financial performance and revenue growth. For Q2 FY25, the company reported consolidated revenue of Rs.2,002 crores, up 20.38 percent from Rs.1,663 crores in Q2 FY25, and a 10.3 percent increase from Rs.1,815 crores in Q1 FY25.
Profit After Tax (PAT) rose 38 percent year-over-year to Rs.202 crores, compared to Rs.146 crores in the same quarter last year, and improved by 32 percent from Rs.153 crores in Q1 FY25.
EBITDA margins stood at 20.8 percent, with EBITDA increasing by 26.1 percent year-over-year and 15.8 percent quarter-over-quarter.
The company’s debt-to-equity ratio stands at 0.29, and the current ratio is 1.57, indicating a robust liquidity position. Return on Capital Employed (ROCE) is 18.6 percent, and Return on Equity (ROE) is 18.5 percent.
Management Commentary
Satish Mehta, CEO and Managing Director of Emcure Pharmaceuticals Ltd., commented on the strong Q2 results, stating, “Emcure witnessed a strong performance in Q2. We have made significant investments in both our International and Domestic businesses over the past 2 years and the benefits of these efforts are starting to particularly reflect in the growth of our International business. Our recent inorganic additions – Sanofi (EPA:SASY) partnership in India and Mantra acquisition in Canada – are now fully integrated and our focus is now on deriving both revenue and operational synergies.”
Domestic and International growth
This quarter marked robust growth across Emcure’s international segments, which expanded 25 percent YoY and 18 percent QoQ. In Canada, business surged by 51 percent YoY, supported by strong growth in core operations and subsidiary Mantra.
The rest-of-world markets grew 29 percent YoY, bolstered by solid performance in both ARV and non-ARV segments, while Europe saw stable growth of 6 percent from the core business.
In India, Emcure’s domestic revenue rose by over 15 percent to Rs.933 crore, driven by consistent base business performance and further supported by the Sanofi distribution agreement.
Shareholding Pattern
As of September 2024, Emcure Pharmaceuticals Ltd.’s shareholding structure shows that promoters hold a majority stake of 78.08 percent. Retail investors account for 15.05 percent, while Foreign Institutional Investors and Domestic Institutional Investors hold 2.91 percent and 3.96 percent stakes, respectively. Namita Thapar, known as Shark Tank India, owns a 2.68 percent stake in the company.
Company Profile
Emcure Pharmaceuticals Ltd. (EPL) is a leading Indian pharma company headquartered in Pune engaged in developing, manufacturing, and globally marketing a broad range of pharmaceutical products. Emcure is an R&D-driven company that develops and manufactures a wide range of differentiated pharmaceutical products
Written by – Siddesh S Raskar
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