- Stock price have gained more than 20% in a month; Touched High of Rs. 405.6 per share
- Over the last 5 years, the company has delivered a robust 30% CAGR in profits and higher single-digit growth in sales
- For Q3FY23, company reported a net profit of Rs. 21.61 crore – 22.8% growth YOY.
- In September 2021, the company acquired a plant in Mehsana, Gujarat to launch Cephalosporin products
NE BUSINESS BUREAU
AHMEDABAD. APR 12
Share price of Ahmedabad-based leading pharmaceutical company – Lincoln Pharmaceuticals Ltd made a 52-week and multi-year high on Wednesday. The share price of the company has gained more than 20% in the last one month. The company’s share price touched an intraday high of Rs. 405.6 per share on BSE with high volumes. The market capitalisation of the company is around Rs. 800 crore.
Over the last 5 years, the company has delivered a robust 30% CAGR in profits and higher single-digit growth in sales. The company has been reporting strong operational and financial performance and has managed to double its profit margins from around 7-8% in FY17 to over 14% in FY22. Strategic growth initiatives, product and geographical expansion, and operational efficiency are likely to contribute to growth going forward.
The liquidity position of the company is on a strong foundation, supported by healthy cash accruals, no-term debt, and healthy return ratios. Backed by improvement in the company’s financial risk profile, steady growth in scale & margins, healthy profitability, rating agency ICRA has upgraded the company’s long-term and short-term bank facilities to A and A1 respectively.
In the last three years, the share price of the company has increased from around Rs. 140 per share to around Rs. 400 now – a gain of 185%. In the last one month, the stock price has registered a gain of over 20% from Rs. 329.80 per share on 13 March 2023.
Promoter group and institutional investors have seen gradually increasing their stake in the company. Over the last few years, promoter groups have gradually increased their stake in the company. Promoter group holding in the company stands at 46.34% as on December 2022 from 32.36% in March 2020. Foreign institutional investors too have gradually increased their stake over the quarter and holds 1.44% as on Dec 2022.
In September 2021, the company acquired a plant in Mehsana, Gujarat to launch Cephalosporin products. The company has invested Rs. 30 crore in the cephalosporin plant – including acquisition and subsequent capacity expansion using an internal source of funds. The plant is expected to contribute sales of around Rs. 150 crore in the next 3 years.
Company is reporting excellent growth in the domestic and export operations and expected to grow at a healthy double digit in the years to come. The company currently exports to 60 plus countries and planning to enter the EU markets very soon.
For Q3FY23, company reported a net profit of Rs. 21.61 crore – 22.8% growth YOY. Total Income in Q3FY23 grew 14.4% to Rs. 140 crore. For 9MFY23, the company reported net profit of Rs. 60.34 crore on total income of Rs. 416.4 crore.
