Shares of Aarti Drugs hit upper circuit for the second straight session on August 21, 2020 and scaled to its all time high price of Rs. 3122.75 per share on the BSE. On the NSE, the counter struck the record high price of Rs. 3133.70. This was after the board of the company approved issuance of 3 bonus shares for every one fully paid-up equity share.
Since the March lows witnessed by Indian stock markets in tandem with huge global sell-off led by the coronavirus pandemic, while Sensex has recouped 36.37%, Aarti Drugs stock has surged a massive 644% taking into account the closing price as on August 21, 2020 and 52-week low price hit on the NSE of Rs. 421 per share on March 23, 2020. And accordingly, a sum of Rs. 1 lakh put into the scrip of Aarti Drugs 5 months back would now be worth nearly over Rs. 7 lakh.
For the just ended week to August 21, the scrip scaled in price 47% while on a monthly basis it gained 116%.
Robust Q1FY21 Earnings is one key reason for massive surge in Aarti Drug's stock price
One of the key reasons behind the stellar run up in stock price of Aarti Drugs is robust earning numbers for the quarter ended June of FY21, wherein net profit rose 280.62 per cent y-o-y to Rs. 85.45 crore. In the same quarter a year ago, net profit stood at Rs. 22.45 crore, while in the previous quarter i.e. March ended quarter of FY'20, net profit was dragged lower by 11.9% to Rs. 110.35 crore. Also management showed confidence in registering increase in PAT of 15-20% over the medium term given the scale of current capital expenditure spree.
Sales at the company also logged an increase by 34.3% to Rs. 544.67 crore in Q1 in comparison to Rs 405.43 crore during the corresponding quarter ended June 2019.
Also FPI holding in the stock increased to 41 in the quarter under review versus the March ended quarter wherein it stood at 31. Shareholders with share capital worth up to Rs. 2 lakh in the scrip also increased in number from 17,601 in Q4FY20 to 21,421 in Q1FY21.
Earnings per share also recorded a surge from 9.19 in June of FY20 to Rs. 31.34 in June of FY21.
Aarti Drugs is a pharma company offering APIs or active pharmaceutical ingredients for a wide range of therapeutic categories including anti-inflammatory, cardioprotectant, antifungals, antibiotic, antidiabetic, sedative and vitamins.