Pharma penny stock under Rs 35 jumps after announcing a turnaround net profit in Q1FY25 and acquiring Rs 25.50 crore pharma manufacturing assets!

On Monday, shares of Sudarshan Pharma Industries Ltd jumped 4.64 per cent to Rs 32.50 per share from its previous closing of Rs 31.06 per share. The shares of the company saw a spurt in volume by more than 1.01 times on the BSE. The stock’s 52-week high is Rs 53.50 per share while its 52-week low is Rs 15.51 per share.

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.

Additionally, the company announced that its Board of Directors has approved the acquisition of land, building, and plant & machinery totalling 1,563.15 square meters from Srigen Lifesciences Private Limited for Rs. 25.50 Crores. Located at Plot Nos. D-22, IDA-Medchal, Medchal Mandal, Malkajgiri District, Telangana, PIN - 501401. This acquisition is not a related party transaction and aims to expand Sudarshan Pharma's production capabilities for pharmaceutical and chemical products, including various APIs. Srigen Lifesciences, the seller, has developed 50 potential API key starting materials, some of which are patent-held and commercially manufactured with an 80 Kilolitre reactor capacity. The acquisition is expected to be completed by December 31, 2025, with the consideration paid in cash.

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 gave multibagger returns of 110 per cent from its 52-week low of Rs 15.51 per share and a whopping 300 per cent in 2 years.

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