Tarsons Products hits 8-month high on heavy volume; soars 20% in a week

In the past six months, the stock soared 32 per cent, as against 9 per cent decline in the S&P BSE Sensex.

Shares of Tarsons Products (TPL) hit eight-month high of Rs 865.95, as the stock rallied 7 per cent on the BSE in Thursday’s trade. The stock has surged 11 per cent in the past two days on the back of heavy volumes.

The stock of medical equipments and suppliers traded at its highest level since November 2021. It had made a market debut on November 26, 2021 and hit a record high of Rs 928.65 on November 29. Currently, the stock traded 31 per cent premium over its issue price of Rs 662 per share.

In the past two weeks, TPL has surged 20 per cent as compared to 2 per cent rise in the S&P BSE Sensex. It soared 32 per cent in the past six months as against 9 per cent decline in the benchmark index.

At 01:59 PM; the stock traded 6 per cent higher at Rs 857 on the back of nearly six-fold jump in trading volumes. A combined 797,000 equity shares representing 1.5 per cent of total equity of the company changed hands on the NSE and BSE.

TPL is an Indian labware company engaged in designing, development, manufacturing and marketing of ‘consumables’, ‘reusables’ and ‘others’ including benchtop equipment, which is used in various laboratories across research organizations, academia institutes, pharmaceutical companies, Contract Research Organizations (CROs), diagnostic companies and hospitals.

During the financial year 2021-22 (FY22), TPL posted a robust operational performance as revenue from operations grew 31.4 per cent year on year (YoY) to Rs 301 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improved to 50.77 per cent from 45.19 per cent in FY21, whereas, profit after tax jumped 46 per cent YoY to Rs 101 crore.

The healthcare services and pharmaceutical industry has shown excellent growth in terms of market demand over the past few years. This was led by the greater frequency of chronic diseases, improved healthcare infrastructure, and higher insurance penetration. Furthermore, increased investment in R&D and expansion of diagnostic centers in India are driving up the need for laboratory equipment.

According to a report by Frost & Sullivan, Indian Laboratory Equipment market is likely to witness 7.8 per cent CAGR in 2020-2025 and reach Rs 3,421 crore (USD 469.9 million). "The factors driving this growth include concerns related to health issues, increasing penetration of healthcare, improving diagnostic facilities, growth in pharmaceutical R&D outsourcing to India, and a growing focus on Research and Development," TPL said in FY22 annual report.