Share price of Aarti Drugs has delivered stellar returns to investors in last five months or 107 trading sessions. Aarti Drugs share price touched all-time high of Rs 3,122 after the mid cap firm hit upper circuit of 10% today. The stock hit upper circuit for the second consecutive session today after the firm's board cleared issuing of three bonus equity shares for every one fully paid-up equity share.
Aarti Drugs share price rose 20% intra day on August 20 to Rs 2,892.75 against previous close of Rs 2410 on BSE. Later, the share closed 17.76% or Rs 428 higher at Rs 2,838.
On March 19, the share hit 52-week low of Rs 422.25 on BSE as Indian market took into account the impact of rising coronavirus cases on the global economy.
Since then, the share has gained 639% till date. During the same period, Sensex has gained 36.37%. An investment of Rs 1 lakh five months ago in Aarti Drugs share would have grown to Rs 7.39 lakh today.
The stock has gained 47.11% in the last 4 days. The share opened with a gain of 6.76% at Rs 3030 today against previous close of Rs 2,838 on BSE.
Share price of Aarti Drugs is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock has gained116% in one month and 47% in a week. During the same period, Sensex gained 1.44% and 1.55%, respectively.
The share saw only buyers and no sellers in today's trade.
The primary reason behind the meteoric rise in the share is 280.62% rise in Q1 net profit to Rs 85.45 crore. In March quarter of previous fiscal, the firm reported 11.90% fall in net profit to Rs 110.35 crore. Management was confident of clocking profit after tax growth of 15-20% over the medium term on the back of ongoing capital expenditure.
Management expects growth in agro/pharma to compensate for weak demand in other segments such as auto and textiles. .
Net profit in Q1 of last fiscal stood at Rs 22.45 crore.
Sales rose 34.34% to Rs 544.67 crore in Q1 against Rs 405.43 crore during the corresponding quarter ended June 2019.
Number of foreign portfolio investors holding the stock rose to 41 in Q1 against 31 in Q4 of last fiscal. Number of shareholders with share capital up to Rs 2 lakh rose to 21,421 in Q1 against 17,601 in Q4 of last fiscal.
For quarter ended June, earnings per share (EPS) rose to Rs 31.34 against 9.19 in June quarter 2019. In Q4 of previous fiscal, EPS stood at Rs 24.28.
Aarti Drugs Limited is a pharmaceutical company. The company offers active pharmaceutical ingredients (APIs) in a range of therapeutic categories, such as anti-inflammatory, cardioprotectant, antifungals, antibiotic, antidiabetic, sedative and vitamins. Its products under APIs include Aceclofenac, Diclofenac Potassium, Diclofenac Diethylamine, Clopidogrel Bisulphate and Telmisartan.