Marksans Pharma surges over 15% upon announcing a buyback plan!

The buyback proposal will be considered by the company’s board in a meeting scheduled on Friday, 08 July 2022.

Marksans Pharma Ltd, an S&P BSE SmallCap company, is trending on the bourses today. Yesterday, after market hours, the company announced a buyback plan. The buyback proposal will be considered by the company’s board in a meeting scheduled on Friday, 08 July 2022.

While the quantum of buyback has not been disclosed, the market has reacted positively to the announcement. Today, in the pre-opening session, the shares of Marksans Pharma Ltd were up by 11.57% from the previous closing price. Post that, the share prices have only climbed higher. The stock opened at Rs 48.20 and logged its day high of Rs 51 (+18.05%).

Having a global footprint, Marksans Pharma’s strengths lie in research, manufacturing and marketing of finished dosage pharmaceutical formulations. The pharma company’s R&D capabilities comprise dossier development, chemical synthesis, process optimization, formulation development, analytical development and conducting stability studies.

Its manufacturing facility in Goa has advanced infrastructure and automated manufacturing and packaging lines that are specially designed to meet global statutory requirements. The plant is approved by regulatory bodies such as US Food and Drug Administration (US FDA), and Therapeutic Goods Administration (TGA).

On the financials front, in Q4FY22, on a consolidated basis, Marksans Pharma’s revenue grew by 26.6% YoY to Rs 418 crore. PBIDT excluding other income came in at Rs 63.64 crore, a decline of 33.3% YoY. The bottom line decreased 62.70% YoY to Rs 29.65 crore.

Looking at the valuations, the company is currently trading at a TTM PE of 9.47x, as against the industry PE of 32.39x. In FY22, the company delivered an ROE & ROCE of 15.54% and 21.29%, respectively.

At 12.32 pm, the shares of Marksans Pharma Ltd were trading at Rs 49.95, an increase of 15.63% from the previous day’s closing price of Rs 43.20 on BSE. The stock has a 52-week high & low of Rs 93.50 and Rs 38.70, respectively on BSE.