The shares of this recently listed pharma company rose nearly 2.5 percent after reporting an increase of 27 percent in net profits quarter-over-quarter.
Share Price Variation
In Wednesday’s trading session, the share price of Emcure Pharmaceuticals Ltd reached an intra-day high of Rs.1,269.45 per share from its previous close of Rs.1,238.5 apiece, gaining around 2.5 percent in the session.
Is Emcure Pharmaceuticals 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.
Financial Performance
Emcure Pharmaceuticals Ltd stock price surged due to stable financial performance and revenue growth. For Q1 FY25, the company reported consolidated revenue of Rs.1,815 crores, up 16.64 percent from Rs.1,556 crores year-over-year, and a 2.5 percent increase from Rs.1,771 crores in Q4 FY24.
Profit After Tax (PAT) rose 8.5 percent year-over-year to Rs.153 crores, compared to Rs.141 crores in the same quarter last year, and improved by 26.44 percent from Rs.121 crores in Q4 FY24.
The company’s strong and stable financials are further highlighted by its solid EBITDA performance, with a 15.6 percent year-over-year increase to Rs.360 crores.
Company’s debt-to-equity ratio stands at 0.79, and the current ratio is 2.29, indicating a robust liquidity position. Return on Capital Employed (ROCE) is 17.23 percent, and Return on Equity (ROE) is 5.25 percent.
Management Commentary
Commenting on the results, Satish Mehta, CEO and Managing Director of Emcure Pharmaceuticals Ltd., said, “Emcure witnessed a robust performance in Q1. We are experiencing the benefits of our investments in both domestic and international business. Both our recent inorganic additions – Sanofi (EPA:SASY) in India and Mantra in Canada, are now fully integrated. Going ahead, our focus will be on growing our India business and accelerating our product launches in international markets to drive strong growth.”
Domestic and International growth
Emcure Pharmaceuticals’ domestic business grew 14 percent to Rs.909 crores, bolstered by a distribution partnership with Sanofi. In Europe, revenue increased by 8.6 percent, and strong growth was observed in Canada, where Emcure ranks among the top 10 generic players.
Shareholding Pattern
As per the June 2024 shareholding pattern, the promoters of Emcure Pharmaceuticals Ltd hold a 78.08 percent stake, while Retail investors hold 17.01 percent stake. Foreign Institutional Investors and Domestic Institutional Investors hold a 1.75 percent and 3.15 percent stake respectively in the company. Shark Tank India fame Namita Thappar owns 2.6 percent stake in Emcure Pharma.
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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