Rs 16/Share Dividend Recommended; Buy The Pharma Stock To Be Eligible?

As of Friday's closing session, RPG Life Sciences Ltd.'s market capitalization, a small-cap pharmaceutical business, was Rs 2,434Cr. One of the largest industrial conglomerates in India, RPG Enterprises, has its headquarters in Mumbai and RPG Life Sciences is a division of it. Global Generics, Synthetic APIs, and Branded Formulations are the three sectors in which RPG Life Sciences operates as an integrated pharmaceutical firm in both home and foreign markets. The firm offers products in 13 different therapeutic categories with certain well-known pharmaceutical brands, including Aldactone, Serenace, Naprosyn, and Azoran, are part of its product line. Following the release of the company's financial results for the quarter and year ended March 31, 2024, and the recommendation of the highest dividend amount of Rs. 16 per share, the shares of RPG Life Sciences closed 2.00% down on Friday at Rs. 1471.30 apiece.

RPG Life Sciences Dividend

The Board of Directors "Recommended equity dividend of Rs. 16 per share of Rs. 8/- each (200 %) for the financial year ended March 31, 2024, which will be paid to the shareholders within 30 days of declaration of the same at the ensuing Annual General Meeting," said RPG Life Sciences in a regulatory filing.

RPG Life Sciences Q4 Results

On a standalone basis, RPG Life Sciences' net profit jumped by 27.92% to Rs 13.24 crore in the quarter that ended in March 2024 from Rs 10.35 crore in the previous quarter that ended in March 2023. Sales went up from Rs 118.49 crore in Q4FY23 to Rs 126.99 crore in Q4FY24, a 7.17% growth. Net profit for the entire year jumped by 29.60% to Rs 87.66 crore in the year that ended in March 2024 from Rs 67.64 crore in the year that ended in March 2023. Sales jumped 13.50% in FY24 to Rs 582.05 crore from Rs 512.81 crore in FY23.

Mr. Yugal Sikri, Managing Director, RPG Life Sciences Ltd. said, "In Q4 FY24, the overall performance of the Company continued to be strong. Revenue and PBT grew by 7% and 28% respectively Y-o-Y. The EBITDA margin retained its 5-year long upward trajectory growing from 21.0% to 23.3% Y-o-Y. The Company continues to remain debt-free. We are well on course in executing all the tenets of our distinctive and smart transformation agenda to achieve our strategic goal of consistent, healthy, and profitable growth. Our top priority, Domestic Formulations, the biggest contributor to the Company's business, recorded robust growth in both value and volume - significantly and consistently ahead of the market based on its 5 pillar-growth strategy."

"The comprehensive smart life cycle management program is shaping some of our 'textbook' legacy brands into mega brands and our niche specialty portfolio into mega portfolio. New launches in specialty and chronic therapies are helping us shape our Specialty business. We are now working on replicating our smart and successful Rheumatology portfolio entry strategy to enter other specialties like Gastro and Derma to emerge as future growth drivers of Domestic Formulations business. Our MABs portfolio continues to post robust performance. Salesforce productivity continues to register healthy upward momentum, assisted by smart deployment of digital," stated Yugal Sikri.

"We are now shaping our International Formulations and API business basis their own 5 pillars, the key being plants modernization cum capacity expansion by infusion of capex and building a smart product pipeline to become strong future growth drivers. The International Formulations business has been registering healthy double-digit growth. Modernization of our API Plant and building product pipeline, both currently underway, will make API also our third engine of growth. Our structural approach of cost optimization has helped us explore newer avenues in our operations to achieve cost efficiencies, thereby helping us to maintain 5-year uninterrupted Y-o-Y margin expansion trajectory for the past 5 consecutive years," he further added.

RPG Life Sciences Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "RPGLIFE is presently trading at Rs 1476, with the stock price fluctuating in the range of 1444 to 1588. It is anticipated to remain sideways within this range. If the price breaches the 1616 level, there is potential for it to further ascend to the 1700 level in the short run, while support is observed near the 1360 level. The Relative Strength Index (RSI) is currently at 40.04 and is trending sideways, indicating a significant sideways movement. The stock has shown resilience by rebounding from robust support at 1360, aligned closely with its 200-day Exponential Moving Average (EMA) levels. Significantly, it trading below 20-day and 50-day Exponential Moving Average (EMA), indicating sideways strength."

"The overall trend for RPGLIFE is sideways to Bullish, supported by various technical indicators, reinforcing the optimistic outlook. Given these signals, there is a possibility for the stock to achieve a target price of Rs 1700 in the near term. It is advisable to consider buying on dips, particularly around Rs 1460 which is also its 100 Day EMA levels, to capitalize on potential retracements in the stock price. To prudently manage risk, implementing a stop-loss (SL) at Rs 1360 is recommended. This precautionary measure is crucial to safeguard investments in the event of an unexpected market reversal," stated the analyst.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.