Aarti Drugs Plans Buyback At 76% Premium, Shares Surge Over 16%
The company's first-quarter net profit rose 37.14% YoY to Rs 48 crore. It also proposed to buyback 6.65 lakh shares.
Shares of Aarti Drugs Ltd. hit a 52-week high surging more than 16% on Monday on a share buyback proposal and a jump in its first-quarter profit.
The company proposed a buyback of 6,65,000 equity shares on July 21, according to its exchange filing. The equity represents 0.72% of the company's paid-up capital, and the buyback price is set at Rs 900 per share. That's more than 76% premium over its Friday's closing price of Rs 511.
The company's net profit rose 37.14% year-on-year to Rs 48 crore in the first quarter ended June, according to the filing.
Aarti Drugs Q1 FY24 Highlights (year-on-year)
Revenue rose 6.3% to Rs 661 crore.
Ebitda rose 26.87% to Rs 85 crore.
Ebitda margin stood at 12.8% compared to the 10.8% in the year ago period.
The company has 12 manufacturing facilities and a monthly capacity of 4261 mega tonne, as of June 30.
Shares of the company surged 16.24% to Rs 593.45 apiece compared to a 0.18% decline in the Nifty 50 as of 12:30 p.m. on Monday.
The total traded quantity so far in the day stood at 23.7 times the 30-day average volume. The stock's relative strength index stands at 81, indicating that it may be overbought.
Of the three analysts tracking the stock, two maintain a 'buy' and one recommends a 'hold', according to Bloomberg data. The consensus price estimate indicates a 13.4% downside over the next 12 months.