Upper Circuit for Micro-Cap Multibagger Pharma Stock: Board Approves Allotment of 3,70,000 Shares to Ashish Kacholia

Market Buzz

As the Indian markets surge with renewed energy, the bulls take center stage, orchestrating a market symphony that propels Nifty beyond the 21,450 mark. Amid this bullish wave, Sanjivani Parenteral Ltd. emerges as a standout performer, capturing investors’ attention with a 2% surge, triggering an upper circuit, and achieving a fresh 52-week high at Rs 169.80.

Inside Sanjivani Parenteral Ltd.

Operating from cutting-edge manufacturing plants in Navi Mumbai and Dehradun, Sanjivani Parenteral Ltd. specializes in high-quality parenteral and oral solid products. Their prowess spans major therapeutic areas, including CNS, CVS, Antibiotics, Gastroenterological, Anti-Diabetics, and Anti-Allergic, supported by a robust R&D setup.

Decoding Revenue

In the financial arena, Q2FY24 reports unveil the company’s dynamic performance. A substantial 73.3% of revenue stems from exports, showcasing Sanjivani Parenteral Ltd.’s global reach. Digging deeper into product categories, injections dominate as the revenue champion, commanding an impressive 60.1%, closely followed by tablets at 38.7%.

Strategic Collaborations and Future Plans

The company’s strategic collaboration with Hindustan Antibiotics Ltd. adds another layer to its growth trajectory. An agreement has been sealed for the manufacturing of IV formulations and IV sets, with a confirmed purchase commitment. The upcoming plant, scheduled for commissioning by Q3FY25 in Pune, is set to boast a capacity of 50 lakh bottles of IV fluids and 10 lakh IV sets per month.

Prague Partnership and European Expansion

In a global move, Sanjivani Parenteral Ltd. has partnered with Aievia Healthcare in Prague, Czech Republic, aiming to establish a new manufacturing facility. This move strategically positions the company to serve the pharmaceutical markets of the European Union. The benefits are manifold, including lower import/export costs by 20-30%, faster distribution and time-to-market by 15-20%, and the enhanced consumer trust stemming from stringent EU quality standards.

Prague, with its proximity and strategic location, provides excellent access to the growing EU nutraceutical market, estimated at around 65 billion Euros, expected to grow at 7% annually.

Board’s Decisions on December 25, 2023

In a significant development, the board of Sanjivani Parenteral Ltd. convened on December 25, 2023, approving the issuance of 600,000 convertible warrants to promoter Mr. Ashwani Khemka and Mr. Ashish Kacholia. Priced at Rs 135.10 per warrant, this transaction allows for a 25% upfront payment, with the remaining 75% payable upon conversion into equity shares within 18 months.

To fortify its financial standing, the board also greenlit preferential allotment of 16,86,000 equity shares at Rs 135.10 per share, amounting to Rs 22.77 crores. Notable investors in this round include India Bridge Fund, Mr. Ashish Kacholia, and Mrs. Monika Garware.

Stellar Stock Performance

With a multibagger return of 333.59% in the past year, Sanjivani Parenteral Ltd. has firmly established itself as a micro-cap gem with a market cap of Rs 170 crore. Investors eagerly await the Extraordinary General Meeting scheduled for January 18, 2024, anticipating an exciting chapter in the company’s growth saga.

As the market heats up, this pharmaceutical star remains one to watch, shining brightly in the ever-evolving narrative of India’s dynamic financial landscape.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.