Morepen Laboratories hits 52-week high on good Q2 results

The stock surged 16% to Rs 21.40, also its 52-week high on the NSE.

Morepen Laboratories has surged 16% to Rs 21.40, also its 52-week high on the NSE, after the company reported an over 10-fold jump in net profit at Rs 3.22 crore for the quarter ended September 30, 2015 (Q2), on back improvement in sales revenues.

The small-sized pharmaceutical company had profit of Rs 31 lakh in the same quarter year ago.

The company’s net income from operations rose by 24% in Q2 at Rs 113 crore from Rs 91.18 crore in the corresponding quarter of previous fiscal.

The cash surplus (EBDA) has also shown a significant rise of 49% YoY at Rs 12.74 crore against Rs 8.52 crore in a year ago quarter, Morepen Laboratories said in a press release.

“Our cost reduction efforts coupled with continuous investments in R&D yielded rich dividends for the company as it attained a strong hold in the international markets, which eventually reflected positively on financial front in the current fiscal,” it added.

Meanwhile, for the first half (April-September) of the current fiscal, the company posted net profit of Rs 5.72 crore against Rs 1.34 crore during the same period last fiscal. It had profit of Rs 58 lakh in entire previous financial year 2015.

Till 11:58 AM, a combined 12.65 million shares representing 2.8% of total equity of the company changed hands on the BSE and NSE.