This pharma stock listed in July has rallied 10% in trade; Check details

The stock was listed on July 10, 2024, and made a stellar debut on Indian bourses with the shares getting listed at Rs 1,325.05 on the BSE, a 31.45 per cent premium over its issue price

Emcure Pharmaceuticals shares gained 9.9 per cent in Tuesday's trade on positive outlook and logged an intraday high at Rs 1,440.9 per share on BSE. 

 

Around 1:55 PM, Emcure share price was up 5.8 per cent at Rs 1,387.05 per share on BSE. In comparison, the BSE Sensex was down 0.24 per cent at 79,914.82. The market capitalisation of the company stood at Rs 26,228.89 crore.  

Emcure Pharmaceuticals reported a 38.2 per cent year-on-year (Y-o-Y) increase in net profit for the quarter ending September 30, 2024, reaching Rs. 202 crore, compared to Rs. 145.8 crore in the same period last year. The company’s revenue grew by 20.4 per cent Y-o-Y, rising to Rs. 2,002 crore from Rs. 1,663 crore in Q2 of the previous fiscal year.

 

Meanwhile, Kotak Institutional Equities has upgraded the stock to 'Buy' from 'Add' with an unchanged target of Rs 1,680 per share.

 

The brokerage believes Emcure’s organic domestic growth will outperform the Indian Pharmaceutical market (IPM) in 2HFY25.

 

Further, healthy organic growth will be led by an in-licensing deal with Sanofi, consolidation of Mantra, and most of the legal challenges behind it.

 

Citing the risks ahead, the analysts at Kotak said that repercussions due to the drug price fixing cases in the US/Canada, further litigations such as the now-resolved one with HDT Biocorp and the inability to consistently outperform IPM growth may impact the company.

 

Emcure Pharmaceuticals was listed on July 10, 2024, and made a stellar debut on Indian bourses with the shares getting listed at Rs 1,325.05 on the BSE, a 31.45 per cent premium over its issue price of Rs 1,008.

 

The robust debut was followed by an overwhelming response to Emcure Pharma's initial public offer (IPO) which saw an overall subscription rate of 67.87 times. The retail category was subscribed 7.36 times, while the Qualified Institutional Buyers (QIB) category saw an astonishing 191.24 times subscription. Additionally, the Non-Institutional Investors (NII) category was subscribed 49.32 times.

 

Emcure Pharmais an Indian pharmaceutical company, founded in 1981, with a strong global presence in over 70 countries. The company specializes in the research, development, manufacturing, and marketing of a wide range of branded and generic pharmaceutical products. 

 

Emcure’s product portfolio includes drugs for oncology, cardiology, anti-infectives, diabetes, immunology, and gynecology. With manufacturing facilities in India and several international markets, the company adheres to global quality standards. Emcure invests significantly in research and development, focusing on innovative healthcare solutions and biosimilars. Additionally, it is committed to sustainability and corporate social responsibility, contributing to healthcare, education, and community development.

 

Since its listing, Emcure Pharma shares have lost 3.5 per cent against Sensex's rise of 0.23 per cent.