Pharma penny stock under Rs 50: Company receives rating from Care Rating Ltd; Details inside!

Today, shares of Sigachi Industries Ltd gained 1.37 per cent to an intraday high of Rs 42.89 per share from its previous closing of Rs 42.31 per share. The company has a market cap of over Rs 1,600 crore and has delivered good profit growth of 28 per cent CAGR over the last 5 years. From Rs 34.51 per share (52-week low) to Rs 42.89 per share, the stock is up by 24.3 per cent.

On July 9, 2025, CARE Ratings reaffirmed the ratings for Sigachi Industries Limited's (SIL) bank facilities at 'CARE A-; Stable / CARE A2' but placed them on a "Rating Watch with Negative Implications." This decision follows a fire on June 30, 2025, at SIL's Hyderabad manufacturing unit, which caused significant damage and casualties. CARE Ratings will closely monitor the incident's impact on the company's revenue, profitability, and cash flows, along with the outcome of ongoing investigations, before undertaking a rating review.

The fire at the Hyderabad unit is expected to significantly impact SIL's operations, as this facility contributes approximately 20 per cent of the company's total revenue. To mitigate this, SIL plans to increase capacity utilisation at its Gujarat units and explore expanding those facilities. While the company has insurance coverage for structural damage, inventory, and production loss for 90 days, and possesses adequate liquidity with a free cash balance of around Rs 40 crore, profitability and free cash flows are anticipated to be affected by one-time expenses, including compensation for the victims.

About the Company

Sigachi Industries Limited, a publicly traded pharmaceutical company listed on NSE and BSE, is a global leader in providing high-quality excipients, vitamin-mineral nutrient blends, APIs, and O&M services. With over 35 years of industry expertise, Sigachi has built a strong reputation as a trusted partner for pharmaceutical and nutraceutical companies worldwide. They specialise in innovative solutions for food stability, fortification, and nutrition, offering tailored blends of vitamins, minerals, and other ingredients to meet the evolving needs of consumers. By utilising advanced technologies like blending, encapsulation, and spray drying, Sigachi empowers food manufacturers to create products with superior taste, quality, and nutritional value, contributing to a healthier and happier world.

The company announced positive Quarterly Results (Q4FY25) and annual results (FY25). According to quarterly results, revenue increased by 23 per cent to Rs 128.21 crore, EBITDA increased by 30 per cent to Rs 30.75 crore and net profit increased by 7 per cent to Rs 16.17 crore in Q4FY25 compared to Q4FY24. In its annual results, revenue increased by 22 per cent to Rs 488.24 crore, EBITDA increased by 36 per cent to Rs 120.50 crore and consolidated PAT increased by 22 per cent to Rs 70.46 crore in FY25 compared to FY24.

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