Marksans Pharma's stock witnessed a strong performance on Friday, climbing 3.23% to ₹319 on the BSE in intraday trading. The uptick followed the company's announcement of receiving final approval from the USFDA for its generic drug Loratadine Tablets.
The medication, a generic version of Clartin by Bayer Healthcare, is an over-the-counter antihistamine used to treat symptoms like sneezing, itching, watery eyes, and a runny nose caused by allergic rhinitis. The approval is expected to strengthen Marksans Pharma's presence in the US market, a critical region for its revenue growth.
Impressive Q2FY25 results
The company's strong quarterly performance underlines its resilience in a competitive pharmaceutical market. Marksans Pharma reported a 15.8% rise in consolidated net profit to ₹96.72 crore in Q2FY25, compared to ₹83.52 crore in the previous year. Revenue from operations jumped 20.83% to ₹641.92 crore, with significant contributions from the US and North America, which generated ₹304.2 crore in revenue—a robust 37% YoY growth.
EBITDA stood at ₹136 crore, marking a 19.1% YoY increase. However, the EBITDA margin slightly dipped to 21.1% from 21.4% in the same period last year.
For investors considering share market investment, the company's R&D expenses, representing 1.7% of consolidated revenue, highlight a focus on innovation. This strategic investment ensures Marksans Pharma remains competitive, especially in high-demand regions like the US.
Share market performance
Marksans Pharma shares have outperformed the broader market, delivering a stellar 125% return over the past year compared to the BSE Sensex's 18.4% rise. Year-to-date, the stock has surged 95%, showcasing its potential for long-term share market investment.
The company's total market capitalisation stands at ₹14,270.13 crore, with a price-to-earnings ratio of 92.89 times and earnings per share of ₹3.39. This growth trajectory reflects investor confidence, backed by robust earnings and strategic market expansions.
Key takeaways
Share market investment opportunity: A 125% stock return over the past year highlights its appeal for potential investors.
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