Small Cap Multibagger Pharma Stock To Consider Buyback, Rally 280% In 5 Yrs

Aarti Drugs is a small cap pharma company that recorded a market cap of Rs 4,611.02 Cr during Friday's closing session. With its wholly-owned subsidiary, pinnacle life science private Ltd, the company manufactures active pharmaceutical ingredients (APIs), pharma intermediates, specialty chemicals, and formulations. The company is going to consider buyback of shares on July 21. "This is to inform you that next Board Meeting of the Board of Directors of the Company is scheduled to be held on Friday, July 21, 2023 inter alia to; Consider, approve and take on record Audited Financial Results for the Quarter ended June 30, 2023.

Consider the proposal of buyback of the fully paid-up equity shares of the Company including matters related/incidental thereto. In pursuance to our intimation dated June 29, 2023, the trading window of the Company shall remain closed until the expiry of 48 hours after the declaration of the said Financial Results," said Aarti Drugs in a stock exchange filing.

The company reported a net income of Rs 743.28 Cr in Q4FY23 up by 6.60% YoY from Rs 697.23 Cr in Q4FY22. Its net profit was Rs 56.18 Cr in March 2023 quarter up by 1.55% YoY from Rs 55.32 Cr reported in March 2022 quarter. In the year ended FY2023 its net income stood at Rs 2718.25 Cr up by 8.73% from Rs 2499.96 Cr in the year ended FY 2022. Its net profit reached Rs 166.36 Cr in 12MFY23 down by 18.85% YoY from Rs 205 Crs in 12MFY22.

On Friday the shares of Aarti Drugs closed on the BSE at Rs 497.95 apiece, up by 2.01% from the previous close of Rs 488.15. The stock made a 52-week-high of Rs 511.65 on (06/10/2022) and a 52-week-low of Rs 310.80 on (20/03/2023). The stock has produced a multibagger return of 280.00% over the past five years, and a rise of 13.92% during the past year. The stock has gained 9.78% YTD so far in 2023. During Q1FY24 the company reported promoter shareholding of 58.70%, FIIs stake of 1.97%, DIIs stake of 4.72% and public stake of 34.63%.