Healthcare Stock Under Rs 20 Signs Major Rs 517 Cr Overseas Deal, Eyes Rs 25.85 Cr Service Income

With a market valuation of Rs 154.59 Cr, Welcure Drugs & Pharmaceuticals Ltd, a small-cap healthcare company, closed Wednesday, June 18, at a 5% upper circuit limit of Rs 13.74 per share. This came after the company announced a final mandate for third-party sourcing and procurement services totalling Rs 517 crore with an overseas client, Fortune Sagar Impex Company Limited, Thailand.

Welcure Drugs & Pharmaceuticals Ltd. will source and buy many finished-dosage SKUs in accordance with the demand. The company, which is built on a fee-based model, will get a set 5% commission on the cost of products. For FY 2025-2026, an estimated Rs. 25.85 crore in service income is anticipated, which will considerably boost Welcure's revenue as per a BSE filing.

The Rs. 517 crore mandate is being executed on a call-off basis, with the initial lot being mobilized as soon as the standard prefunding milestones are met. By September 30, 2026, the engagement is expected to be finished. Packing, labeling, containerization, insurance, freight, and all destination-country regulatory approvals will fall within the purview of the buyer, Fortune Sagar Impex Company Limited, Thailand.

"The mandate enhances Welcure's fee-based portfolio without incremental balance-sheet exposure. The Company will provide further updates, as and when successive call-offs are activated, in accordance with SEBI LODR," said Welcure Drugs & Pharmaceuticals in a regulatory filing on Wednesday.

With revenue from operations of Rs 21.21 cr in the quarter ended in March 2025, rising sharply from Rs 0.88 cr in Q3 FY25, Welcure recorded an outstanding rebound in its quarterly results, indicating a 2,310% QoQ jump. Net profit after tax climbed to Rs 2.54 crore in Q4FY25, an incredible 6,250% growth from Rs 0.04 crore in Q3, while operating profit was Rs 0.63 crore. During the quarter, the net profit margin was around 12%.

A publicly listed corporation founded in 1996, Welcure Drugs & Pharmaceuticals Ltd. focuses on producing and selling pharmaceutical formulations. With an emphasis on antibiotics, vitamins, and other pharmaceuticals, the firm manufactures a range of drugs in various forms, such as tablets, capsules, dry syrups, and more.

WELCURE's price is well above all daily moving averages-5 days, 10 days, 20 days, 50 days, 100 days, and 200 days-indicating strong upward momentum. The stock's 14-day RSI is at around 76, suggesting an overbought situation, according to Investing.com, while the MACD is at about +0.48, signalling a buy signal. The majority of other oscillators, including stochastics, CCI, ROC, and Williams%R, are also riding the bullish wave.