Pharma penny stock under Rs 30 hit upper circuit after the update of the application under the Production Linked Incentive (PLI) Scheme

On Tuesday, shares of Sudarshan Pharma Industries Ltd hit a 2 per cent upper circuit to Rs 32.77 per share from its previous closing of Rs 32.13 per share. The stock’s 52-week high is Rs 53.50 per share while its 52-week low is Rs 21.90 per share.

Sudarshan Pharma Industries Limited (SPIL) has requested and received approval for a significant change to its greenfield projects under the Production Linked Incentive (PLI) Scheme. Citing issues of local resistance, the company requested a change in location from MIDC, Maharashtra to GIDC, Gujarat. Additionally, SPIL sought an extension to the scheduled commercial operation dates for its Vitamin B6 and Vitamin B1 projects, which were originally set for August 30, 2023, and March 31, 2024, respectively, but had already been extended once to March 31, 2025.

The competent authority has approved the company's request. This includes the change of location for the greenfield projects to GIDC, Gujarat, and a revision of the scheduled commercial operation date. The new deadline for commissioning the projects for both Vitamin B6 and Vitamin B1 is now December 31, 2027. All other criteria for claiming the incentive will remain unchanged as per the scheme guidelines.

Earlier, the company had made a strategic acquisition, purchasing the assets of Srujan Lifesciences Private Limited for Rs 25.50 crore. This capital investment includes a fully operational manufacturing facility in Telangana, which consists of land, a building, and machinery. The acquisition is a key part of SPIL's long-term strategy to expand its production capacity for high-value Active Pharmaceutical Ingredients (APIs) and speciality chemicals. The newly acquired facility will allow SPIL to immediately scale up its manufacturing, reduce time-to-market for new products like Ropivacaine and Probenecid, and broaden its product portfolio for both domestic and international markets.

About the Company

Sudarshan Pharma Industries Ltd., incorporated in 2008, is a Mumbai-based company specialising in the manufacturing of Active Pharmaceutical Ingredients (APIs) and pharmaceutical items, alongside trading in chemicals and solvents. They offer a diverse portfolio, from bulk chemicals and intermediates to finished formulations, with numerous products registered under their "R" trademark, including popular brands like Love Birds and Metfocal. The company operates both in India and international markets, including exports to countries in Southeast Asia, the Middle East, and North Africa.

According to the Quarterly Results, the net sales increased by 46.4 per cent to Rs 145.26 crore in Q1FY26 compared to Q1FY25. The company reported a turnaround net profit of Rs 3.96 crore compared to a net loss of Rs 1.21 crore in Q1FY25, an increase of 427.3 per cent YoY. In its annual results, the net sales increased by 9 per cent to Rs 505 crore and net profit increased by 45 per cent to Rs 16 crore in FY25 compared to FY24. The company has a market cap of Rs 770 crore and has delivered a good profit growth of 70 per cent CAGR over the last 5 years.

In June 2025, FIIs bought 24,84,000 shares and increased their stake by 19.49 per cent compared to March 2025. Additionally, the Government of India took a fresh entry and bought 1,28,000 shares or 0.05 per cent stake in the company. The stock is up by 38.2 per cent from its 52-week low of Rs 21.90 per share and has given multibagger returns of 285 per cent in 2 years.

Disclaimer: The article is for informational purposes only and not investment advice.