FDC Stock Hits Record High After Q1 Profit Jumps, Board Approves Share Buyback 

FDC's June quarter profit rose 55% YoY to Rs 109.81 crore, and its board approved buyback of shares worth Rs 155 crore.

<div class="paragraphs"><p>Medicine bottles. (Source: freepik)</p></div>
Medicine bottles. (Source: freepik)

Shares of FDC Ltd. surged over 10% to a record high on Thursday after its first-quarter profit jumped and its board approved the share buyback plan.

The buyback of up to 31 lakh shares, or 1.87%, of the total paid-up equity capital will be done at a price of Rs 500 apiece for an aggregate amount not exceeding Rs 155 crore.

The board also approved the acquisition of an additional 7% stake in its subsidiary FDC SA from other existing shareholders and the settlement of their existing outstanding loan with interest.

FDC Q1FY24 (Consolidated, YoY)

  • Revenue is up 8.4% at Rs 536.38 crore.

  • Ebitda is up 56.4% at Rs 122 crore.

  • Ebitda margins at 22.75% vs. 15.77%

  • Net profit is up 55.4% at Rs 109.81 crore.

Shares of FDC rose 7.63% to 418.8 apiece as of 9:57 a.m., as compared to 0.26% decline in the NSE Nifty 50. The scrip rose as much as 10.24% intraday to hit a record high of Rs 428.95 apiece. It has risen 54.6% year-to-date.

Total traded volume stood at 41.9 times its 30-day average. The relative strength index is at 85, implying that the stock may be overbought.

One analyst tracking the company maintains a 'buy' rating on the stock, according to Bloomberg data.