Shares of Indian drugmaker Zydus Lifesciences jumped 9.2 percent on Monday, February 6 to reach a new 52-week high.
The company reported a 24.5 percent rise in third-quarter profit to Rs. 622.90 crores helped by strong sales in its key domestic and U.S. markets.
The company had posted a consolidated net profit of ₹500.4 crore in the same period last fiscal, Zydus Lifesciences Ltd said in a regulatory filing.
During Monday’s trade, the stock opened at a price of Rs. 452 per share against the previous close of Rs. 434.65 per share and surged further to touch a new 52-week high of Rs. 475 per share. It was trading at ₹472.65, up by 8.74 percent at 11:10 a.m. on the NSE.
The stock touched a 52-week-low of Rs. 319 on May 11, 2022, indicating that at the current level, the stock is trading 48 percent above its 52-week low.
The stock has grown nearly 31 percent in the last six months. Moreover, in the past one year, it has increased by over 18 percent. Furthermore, the stock has returned 14 percent to its shareholders in the last five years.
On Friday, the company informed through an official filing that its business in India comprising formulations as well as consumer wellness registered revenues of ₹1,643.6 crore, up 13 percent, while the US formulations business reported revenues of ₹1,925 crore, up 29 percent from the year-ago period in the 3rd quarter.
Consolidated total revenue from operations during the quarter under review stood at ₹4,362.3 crore, as against ₹3,639.8 crore in the year-ago period. Total expenses in the third quarter were higher at ₹3,620.7 crore, as compared to ₹3,096.3 crore in the corresponding period last fiscal.
"With India formulations in a double-digit growth trajectory and US business continuing to build traction, portfolio execution will sustain growth momentum, said Sharvil Patel, MD of the company.
The company's consumer wellness segment in the domestic market, known for making glucose powder GluconD and anti-bacterial cooling powder Nycil, grew 7.8% from a year ago.
The impact of price hikes to mitigate inflationary pressure would be reflected from the fourth quarter onwards in the consumer wellness segment, which accounted for 10% of total revenues in the third quarter, the company added.
Zydus Lifesciences Ltd., formerly Cadila Healthcare Limited, is an India-based life sciences company. The company is focused on delivering care and nurturance for patients, backed by science and cutting-edge technology. It has operations globally and is present in approximately 55 countries worldwide, with 36 manufacturing plants and eight research and development centers.
According to a MintGenie poll, an average of 31 analysts have a ‘BUY’ call on the stock.