Dark horse stock of the day: Gland Pharma jumps 20% in the morning trade

The shares of Gland Pharma Limited experienced a sharp rise today. The stock opened at Rs 1480.05, which was 10% higher than the previous day’s closing price of Rs 1343.85. During the intraday session, the stock surged by 20% with significant trading volume.   

Upon analysing today’s share volumes, it is evident that there has been a substantial increase of more than 13.55 times in volumes than its normal trading volumes on the BSE. While writing this article, the shares of the company are up by Rs 268.75, which is Rs 1612.60 on the BSE. It is currently locked into an upper circuit price limit of 20%.  

The stock’s 52-week highs and lows are recorded at Rs 2606 and Rs 861.50, respectively. With a market capitalization of Rs 26,559.65 crore, the stock has displayed remarkable performance in recent times, delivering a 24% return in a week and an impressive 54% return in just one month.  

Financial Performance    

The company posted its June quarter on Monday, revenue from operations experienced a modest increase of 3.2% YoY, going from Rs 857 crore to Rs 884 crore. One positive thing here is that after four consecutive quarters, the company posted growth in its revenue. The operating profit of the company declined from Rs 270 crore to Rs 259 crore but on a sequential basis it grew from Rs 169 crore to Rs 259 crore, the operating profit stood at 29%. Whereas the net profit of the company amounts to Rs 188 crore, the net profit margins stood at 21% in FY23.   

The company’s return on capital employed (ROCE) and return on equity (ROE) are at 14.7% and 10.8%, respectively. The Book value of the company is Rs 483, whereas the Price to book value is 3.33 times. Furthermore, the price-to-earnings ratio is 34.5 times.   

Business Overview    

Gland Pharma Limited, an Indian-based company, specialises in the production of generic injectables. Their focus lies in complex injectable medications within segments such as sterile injectables, oncology, and ophthalmology.   

The company offers a range of services including contract development, proprietary development, preparation and filing of dossiers, technology transfer, and manufacturing across various delivery systems. Their product lineup encompasses liquid vials, lyophilized vials, pre-filled syringes, ampoules, bags, and drops.   

The company’s products include Heparin Sodium Injection, Enoxaparin Sodium Injection, Rocuronium Bromide Injection, and Daptomycin Injection. The company’s products are distributed across a range of countries including the United States, Europe, Canada, and other regions.  

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.