Strides Arcolab has soared 7% to Rs 738, its lifetime high, on back of heavy volumes on the counter. As many as a combined 322,533 shares have already changed hands on the counter till early noon trades, against an average around 135,000 shares that were traded daily in past two weeks on both the exchanges. The stock is outperforming the market with wide margin by gaining almost 100% compared to 12% fall in the benchmark index since past one year.
The pharmaceutical firm has reported a better-than-estimated 1QCY12 results and strong revenue growth in the Specialties segment. Overall EBITDA (earnings before interest, taxes, depreciation, and amortization) margin increased 450bps yoy to 24.9% on account of a better business-mix, increase in capacity utilization and divestment of low-margin business.
“Strides announced the acquisition of a USFDA approved sterile injectables plant from Star Drugs for Rs 125 crore. The plant has a capacity of 97mn liquid injectable vials. This will enable quicker commercialization of approved products to ensure future growth,” according to analyst at Anand Rathi equity research.