Shares of Aarti Drugs surged 6.6 percent on Tuesday, July 25, to hit a 52-week high for the second consecutive day.
Over the past two days, the stock has recorded a remarkable rally of more than 26 percent following the approval from the company's board for the buyback of 6,65,000 equity shares. The buyback price has been fixed at ₹900 per equity share.
Aarti Drugs Limited is an India-based pharmaceutical company engaged in manufacturing active pharmaceutical ingredients (APIs), pharma intermediates, and specialty chemicals. The company, through its wholly-owned subsidiary Pinnacle Life Science Private Limited, is focused on producing formulations.
During Tuesday’s trade, the stock opened at a price of Rs. 615.90 per share against the previous close of Rs. 605.50 and rallied further during the early trading session to hit a 52-week high of Rs. 645.75 per share.
It was trading at Rs. 637.35 per share, up by 5.26%, at 10:40 a.m. on the NSE.
The stock touched a 52-week low of Rs. 313.90 on March 20, 2023, indicating that at the current price, the stock is trading over 103 percent above that level.
The stock has grown over 41 percent in the last one month. Moreover, in the past six months, it has increased by almost 56 percent. Furthermore, the stock yielded a positive return of over 360 percent in the last five years.
The total cost of the buyback to the company will be ₹59.85 crore and will constitute 5.44 percent of the fully paid-up equity share capital and 5.10 percent of the free reserves.
In Q1 FY24, the company delivered a robust financial performance with a significant jump of 38 percent in profit after tax (PAT), reaching ₹48 crore compared to ₹34.80 crore in the same period last year. On a sequential basis, the PAT grew by 15 percent.
During the quarter ending in June 2023, the revenue from operations amounted to ₹661.70 crore, displaying a year-on-year (YoY) growth of 6 percent compared to ₹622.20 crore in the corresponding period.
Additionally, the earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at ₹84.70 crore, as against ₹67.4 crore YoY, with the EBITDA margin recorded at 12.80 percent.