Pharma intermediary sparkles with sharp stock price gains
Image credit X.com
Pharma API manufacturer turns multi-bagger
By S Jha
New Delhi, August 27: Divi’s Laboratory, for long, stood out as the pharmaceutical intermediary manufacturing giant. But there is a new boy in the room in the fast-growing intermediary business segment catching the fancy of the investors.
A host of other pharmaceutical firms also boarded the API businesses. The segment is now cluttered with margin pressure seen by the key players.
But investors have longed asked, who will be the next Divi’s Laboratory. On May 9, 2017, the share price of Divi’s Laboratory was trading at ₹650 per share.
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The share price of Divi’s Laboratory was trading at ₹5108 on September 24, 2021. The next three years, after China Reopening, were challenging for the pharmaceutical intermediaries.
China is the global leader in the manufacturing of pharmaceutical intermediaries. Buy 2022, China had fully reopened its economy after stringent lockdown norms imposed across the country.
In less than two years, the share price of Divi’s Laboratory went crashing to the level of ₹2700. That was a steep fall from the peak of ₹5108.
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But 2023 brought new opportunities for the pharmaceutical intermediary manufacturing amid the government push for the PLI scheme. This lifted the share price of Divi’s Laboratory back to the level last seen in 2021.
It’s just a kiss away from the peak of ₹5108. The share price of Divi’s Laboratory closed at ₹4900 on Tuesday.
While Divi’s Laboratory share price is steadily ascending, it’s new competitor Capling Point Laboratory is on a furious run on the Dalal Street.
The share price of Capling Point Laboratory has given a return of 25 per cent last month. It has given a return of 91 per cent in the last one year.
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The Capling Point Laboratory share price climbed by another six per cent on Tuesday. The Capling Point Laboratory IPO had come in 1994. It was subscribed 114 times.
On April 6, 2023, the Capling Point Laboratory share was trading at ₹628. In the next 16 months, the Capling Point Laboratory share price tripled.
The Capling Point Laboratory share price closed at ₹1950 on Tuesday. While Divi’s Laboratory share price could not even double from the sharp ascent since 2023, the Capling Point Laboratory has given more than three time returns to the investors.
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The sharp appreciation in the price of the share of the Capling Point Laboratory has come on the basis of the company beating the street expectation in the June quarter result. It maintained an operating profit margin of 33 per cent.
The earning per share of the Capling Point Laboratory in the June quarter was ₹62.88. The operating profit came at ₹577 crores against ₹551 crores in the previous quarter.
Disclaimer: This article makes no recommendation for buy or sell of shares of any company.
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