Strides rallies 9% intraday, hits over 3 year high on healthy Q4 results

Strides Pharma stock price: For FY25, Strides said revenue may grow at 12-15 per cent Y-o-Y and the significant growth will come in H2FY25 based on targeted product launches globally

Shares of Strides Pharma Science hit an over three-year high of Rs 919.35 as they surged 9 per cent on the BSE in Wednesday’s intraday trade, after the company reported the highest-ever quarterly earnings before interest, taxes, depreciation, and amortization (Ebitda) of Rs 204 crore in the March quarter (Q4FY24).

Strides Pharma stock ended 6.37 per cent higher at Rs 900 per share as against a 0.36 per cent gain in the benchmark S&P BSE Sensex. The average trading volume on the counter jumped nearly seven-fold today with a combined 3.2 million equity shares changing hands on the NSE and BSE.

 

The pharmaceutical company had posted Ebitda of Rs 195 crore in Q4FY23. Ebitda margin improved 51 bps to 19.3 per cent from 18.8 per cent. Stable operating costs, led by cost control measures and manufacturing efficiencies, enabled superior Ebitda margin expansion, the company said.

The stock, meanwhile, surpassed its previous high of Rs 914, touched on May 6. It hit its highest level since April 2021. In the past six months, the market price of Strides has zoomed nearly 90 per cent. In comparison, the S&P BSE Sensex was up 12 per cent during the period.

In Q4FY24, Strides' adjusted profit after tax grew 96 per cent year-on-year (Y-o-Y) at Rs 67.0 crore. Revenue was up 6.9 per cent Y-o-Y at Rs 1,058 crore, driven by the US markets and Growth markets.

"FY24 was an exceptional year for Strides, marked by the successful completion of our Reset strategy initiated in FY22. The company achieved all its key objectives laid down in its Reset strategy and has bounced back to become a strong and resilient company," the management said.

The company said, the US remains a key market for Strides, having achieved the higher end of the FY24 revenue outlook of $250 million, the company is well poised to achieve the ~$400 million objective over the next 3 years.

The company’s focus remains on the fast-tracked launches from their approved basket of ANDAs (260+ active ANDAs with 245 approvals). The company is aiming to launch an additional 60 products over the next 3 years to achieve the stated objective of $400 million revenue, Strides said on US business outlook.

For FY25, Strides said revenue is expected to grow at 12 per cent - 15 per cent Y-o-Y. The significant growth will come in H2FY25 based on targeted product launches globally. The company aims to reach the Ebitda of Rs 950 crore-Rs 1,000 crore, with Ebitda margin in the range of 20 per cent – 22 per cent.