Pharma penny stock under Rs 35 hit upper circuit after signing an agreement to acquire Srigen API facility, boosting manufacturing capacity

On Monday, shares of Sudarshan Pharma Industries Ltd hit a 2 per cent upper circuit to Rs 32.13 per share from its previous closing of Rs 31.50 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 made a significant strategic capital investment by acquiring the assets of Srujan Lifesciences Private Limited (Srujan) for Rs 25.50 crore. The acquisition includes land, a building, and plant and machinery at a fully operational manufacturing facility in Telangana. This high-impact move is expected to greatly expand SPIL's production capacity and boost its presence in the fast-growing Active Pharmaceutical Ingredients (API) and speciality chemicals sectors, both domestically and internationally.

The investment of Rs25.50 crore is a cornerstone of SPIL's long-term strategy to build a robust and scalable manufacturing infrastructure. The newly acquired facility will be used to produce high-value, complex pharmaceutical ingredients with strong market demand. These include critical APIs such as Ropivacaine, Bupivacaine, Probenecid, Sitagliptin, Apixaban, and Rivaroxaban, which are used in regulated and semi-regulated markets globally.

The acquisition offers several strategic benefits for SPIL. It provides immediate manufacturing scale-up, allowing for accelerated supply chain responsiveness. The existing infrastructure and regulatory approvals at the facility will significantly reduce the time-to-market for new products, a major advantage over building a new "greenfield" site. Additionally, the facility's capability to produce complex molecules will expand SPIL's product portfolio, and its proven compliance record is expected to shorten approval cycles and lower regulatory costs.

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 46.7 per cent from its 52-week low of Rs 21.90 per share and has given multibagger returns of 275 per cent in 2 years.

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