Accordingly, if an investor had invested Rs 10,000 in the stock four years ago and stayed put, the investment would have jumped to 2.7 lakh, according to an analysis by ET Markets.
However, in the recent past, the rally has fizzled out. For instance, in the last six months, the shares rose just 6% and are up about 12% year-to-date.
The company is engaged in producing, developing, and marketing a range of generic formulations and branded products and exporting to overseas markets.
Its products include tablets, dry syrups (bottles), soft gels, capsules, suppositories, liquid syrups (bottles), liquid injectables in ampoules and vials, lyophilized vials, prefilled syringes (PFS), emulsion injection in ampoules and vials, ophthalmic droppers, pre-mix bags, topicals and sachets (liquids and powders).The company also manufactures a range of ointments, creams, gels and lotions. Its principal research and development facilities are in Tamil Nadu and the manufacturing facility is in Puducherry. It has presence in Latin America (LATAM), Southern Africa and Francophone Africa along with a presence in US and European region.According to the shareholding pattern available with the exchanges, the company is majority owned by promoters at 70.62%, while public shareholders own the rest 29.38%.Among the public shareholders, mutual funds hold just over 1% in the company, while foreign investors have about 3.13%, at the end of March quarter.
In the recent March 2024 quarter, the company’s standalone revenue from operations declined to Rs 139 crore as compared to Rs 144 crore in the same quarter of previous year.
Meanwhile, consolidated profit after tax (PAT) increased to Rs 86.91 crore in the fourth quarter as against Rs 70.77 crore in the previous year period.
Technical outlook – What should investors do?
Technical analysis shows that the stock has given a breakout from lateral consolidation earlier this month, accompanied by strong volumes on the daily chart.
“The momentum indicator RSI is also indicating positive momentum. Additionally, our stock has been consistently outperforming benchmark indices. Based on these indicators, we anticipate continued upward momentum. Investors may consider buying the stock with a stop loss at 1370. Potential upside targets range between 1800 to 2000 levels,” said Mileen Vasudeo, Sr Technical Analyst, Arihant capital.
With data inputs from Ritesh Presswala
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)