This small-cap pharma company, which is engaged in the business of manufacturing API, intermediates, and formulations went up 4.5 percent in opening trade after receiving a Drug Manufacturing License from the Government of Jammu & Kashmir.
Price Movement
In Thursday’s trading session, Innova Captab Limited stock was up 4.5 percent in opening trade after receiving a Drug Manufacturing License. The stock has delivered a return of around 58.57 percent from the listing date and has outperformed Nifty in the same period. The stock is listed at a premium price of Rs. 452.10 which is 0.92 percent higher than the issue price of Rs. 448 apiece. The stock reiterated from the day’s high of Rs. 880 and was trading at Rs. 859.60 which is 2.16 percent above the previous closing price of Rs. 841.40 per share.
What happened
Innova Captab has received approval for the upcoming Jammu Facility and received a Drug Manufacturing License dated 06th November 2024 from the Government of Jammu and Kashmir, Drug Control Organisation, Jammu, and Department of Health and Medical Education. The period of the license is valid till 05th November 2029. This license is to manufacture for sale and distribution of drugs.
Financial Performance
Innova Captab Limited reported financial performance for Q1 FY25, with revenue from operations improved by 26.18 percent year-on-year to Rs. 294 crores, up from Rs. 233 crores in Q1 FY24, and an 11.78 percent increase from Rs. 263 crores in Q4 FY24.
The net profit rose by 61.11 percent year-on-year, reaching Rs. 29.48 crore compared to Rs. 18 crore in the same quarter last year, and a quarter-on-quarter basis marking an increase of 2.64 percent from Rs. 28.72 crore. The company’s return on equity was 17.04 percent from 28.01 percent in FY23, while the debt-to-equity ratio decreased slightly to 0.02 times. Additionally, in FY24, the return on capital employed stood at 18.76 percent, down from 23.92 percent from the previous year.
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Revenue Segment
In its latest quarterly report, the company revealed that it considers revenue from only one segment which is Drugs and Pharmaceutical products as of Q1 FY25.
Future Plans
The company plans to expand its formulation business and portfolio with new products and complex designs.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a major share of 50.90 percent stake in Innova Captab, Foreign Institutional Investors (FII) holding around 1.01 percent, Domestic Institutional investors (DII) standing at 20.61 percent, and public holdings standing at 27.48 percent.
About the company
Innova Captab Limited is a pharmaceutical company in India which specializes in contract development and manufacturing organization (CDMO) services. The company operates across the entire value chain, including manufacturing, research, development, and distribution of both domestic and international branded generics.
Their business model is divided into three segments consisting of CDMO services, domestic branded generics, and international branded generics. With a focus on innovation and quality, Innova Captab aims to expand its market presence while maintaining strong relationships with clients in the pharmaceutical sector.
Written by Santhosh S
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