Pharma stock jumps 8% after promoter increases their stake in the company

Pharma stock jumps 8% after promoter increases their stake in the company


One of the Micro-Cap Pharma stocks engaged in the manufacturing and marketing of a wide range of pharmaceutical products, including antibiotics, antimalarials, and anti-inflammatory drugs. The stock has jumped 8.38 percent after the promoter increased the 0.205 percent stake in the company. 

Stock Price Movement

In Friday’s trading session, Quest Laboratories Limited’s share jumped to an intraday high of 8.38 percent from the previous close of Rs. 128.25. The stock opened at Rs. 128.25 and is currently trading at Rs. 128.25 with a high of Rs. 139 and a low of Rs. 128. The market capitalization now stands at approximately Rs. 224.67 crore. 

What Happened

Mr. Anil Kumar Sabarwal, Managing Director and promoter of Quest Laboratories Limited, has increased his stake in the company by acquiring 33,600 equity shares on January 2, 2025, representing 0.205% of the paid-up equity share capital. 

Prior to this acquisition, he held a significant 62.04% stake in the company as of September 2024. This acquisition reflects his continued confidence and commitment to the growth of Quest Laboratories Limited, further solidifying his position in the company 

Manufacturing Capabilities

Quest Laboratories Limited’s manufacturing facility in Dhar, Madhya Pradesh, produces a variety of dosage forms, including tablets, capsules, and injections. The facility is certified with WHO GMP and GLP, ensuring compliance with international quality standards for manufacturing and laboratory practices. 

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Market Presence 

Quest Laboratories has a significant footprint across India, operating in 12 states and 2 Union Territories. Major markets include Uttar Pradesh, Madhya Pradesh, Maharashtra, Delhi, Jharkhand, Assam, Karnataka, Rajasthan, and West Bengal. 

The company’s strategic focus on quality and compliance has enabled it to cater to both domestic markets and institutional supplies. 

Recent quarter results and ratios

Quest Laboratories Limited’s revenue has increased from Rs. 41 crore in H1 FY24 to Rs. 43 crore in H1 FY25, which has grown by 4.88 percent. The net profit of Quest Laboratories Limited has also grown by 33.33 percent, from Rs. 6 crore in H1 FY24 to Rs. 8 crore in H1 FY25.

Quest Laboratories Limited’s revenue and net profit have grown at a CAGR of 40.38 percent and 115.44 percent, respectively, over the last three years. 

In terms of return ratios, the company’s ROCE and ROE should be 57.5 percent and 46.1 percent, respectively. The debt-to-equity ratio of the company is to be 0.12x, which shows the company is almost debt-free. Quest Laboratories Limited’s EPS is to be Rs. 8.05. 

Company Overview

Quest Laboratories Limited was founded in June 1998 and is an Indian pharmaceutical company specializing in the manufacture and marketing of a wide range of pharmaceutical products. Its offerings include antibiotics, antimalarials, anti-inflammatories, antispasmodics, respiratory medications, and diabetes treatments. 

Written By – Nikhil Naik

Disclaimer

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