During Friday’s trading session, the shares of a leading player in the pharmaceutical industry and India’s largest manufacturer of microcrystalline cellulose surged nearly 10 percent to Rs. 56.2 on BSE, after submitting its first CEP filing for “Propafenone Hydrochloride” and achieving a certificate enabling the export of this product to Europe.
With a market cap of Rs. 1,798.5 crores, at 12:23 p.m., the shares of Sigachi Industries Limited were trading in the green at Rs. 54.8, up by nearly 7.4 percent, compared to its previous closing price of Rs. 51.04.
What’s the news:
The company announced that Trimax Biosciences Pvt Ltd, a subsidiary of Sigachi Industries, received a communication from the European Directorate for the Quality of Medicines & Health Care (EDQM) on its latest CEP Filing submission of “Propafenone Hydrochloride”.
According to the recent regulatory filings with the stock exchanges, Sigachi Industries achieved the Certificate of Suitability for this API, which will enable the company to export “Propafenone Hydrochloride” in Europe and other CEP-accepting countries.
Further, the company mentioned that, it is a significant step towards ensuring European regulatory standards and the highest levels of product quality and safety.
About the Product:
Propafenone Hydrochloride, widely used in the treatment of cardiac arrhythmias, is a high-demand API with a current global market size of $1.2 billion.
The market is poised for robust growth, with projections reaching $2.1 billion by 2032, reflecting a CAGR of 7% over the forecast period. This growth is driven by the increasing prevalence of cardiovascular diseases, the growing adoption of generic medications, and rising healthcare expenditure globally.
About the Subsidiary:
Founded in 2010, Trimax Bio Sciences Private Limited, a subsidiary of Sigachi Industries Limited, specialises in the development and manufacture of active pharmaceutical ingredients (APIs), intermediates, and advanced intermediates.
Located in Raichur, Karnataka, its state-of-the-art facility is designed to meet the highest industry standards, complying with USFDA, cGMP, EMEA, and WHO-GMP guidelines.
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Financials:
Sigachi Industries reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 26.3 percent, falling from Rs. 99 crores in Q2 FY24 to Rs. 139 crores in Q2 FY25.
Similarly, during the same period, the company’s net profit increased from Rs. 15 crores to Rs. 21 crores, representing a growth of about 40 percent YoY.
EBITDA for Q2 FY25 increased by about 37 percent YoY to Rs. 29.3 crores, up from Rs. 21.4 crores in Q2 FY24, while the EBITDA margins declined by 19 bps to 21.38 percent, from 21.57 percent, over the same period.
In Q2 FY25, Sigachi made a strategic entry into the coatings market, aligning with the industry’s growth potential.
The company focuses on a high-margin product mix and cost-efficient manufacturing processes. Additionally, effective inventory management is expected to drive higher EBITDA and profitability in the coming quarters.
Stock Performance:
The stock has delivered positive returns of nearly 6.2 percent in one year, while around 16.4 percent of negative returns in the last six months. So far in 2024, the shares of Sigachi Industries have given positive returns of about 6.8 percent.
About the company:
Incorporated in 1989, Sigachi Industries Limited is engaged in the business of manufacturing Micro Crystalline Cellulose Powder (MCCP). It is a leading manufacturer of pre-formulation excipients and a leader in MCC production in India.
In Q2 FY25, MCC accounted for the largest share of revenue at 81%, outperforming other segments such as APIs, allied trades, and operations & management.
This robust growth in MCC revenue was driven by increased demand and improved capacity utilization. Looking ahead, Sigachi aims to achieve 80% capacity utilization of its expanded production facilities by FY26.
Written by Shivani Singh
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