Emcure Pharmaceuticals shares climb up to 10%, company expected to show robust growth in the coming quarters

Shares of Emcure Pharmaceuticals jumped by nearly 10% to ₹1,443.25 during the intraday session on Tuesday, November 26. The shares of the company ended 4.74% up at ₹1,374 on the NSE.

According to reports, experts have suggested that the company is expected to grow significantly in the coming months.

Emcure Pharmaceuticals financial performance

In the second quarter of the current fiscal (Q2 FY25), the consolidated net profit of the company increased by 38.2% year-over-year (YoY) to ₹201.5 crore, increasing from ₹145.8 crore reported last year.

The company’s revenue from operations increased by 20.4% YoY to ₹2,001.9 crore in the July-September quarter as compared to ₹1,663 crore in the same period of the previous year.

Emcure Pharmaceuticals’ international business grew by 25% YoY and 18% quarter-on-quarter (QoQ). Notably, its domestic business grew by over 15% to ₹933 crore.

Emcure Pharmaceuticals IPO

The Emcure Pharmaceuticals’ ₹1,952.03 crore IPO was a fresh issue of 0.79 crore shares totalling ₹800 crore and an offer for sale component of 1.14 crore shares aggregating to ₹1,152.03 crore.

The IPO was subscribed 67.85 times, receiving bids for over 92.97 crore shares against 1.37 crore shares on offer. The retail segment of the IPO was subscribed by 7.19 times, the NIIs’ segment 48.29 times and the QIBs’ portion 195.83 times. Shares of the company were listed on BSE and NSE on July 10, 2024. The listing price of the stock was ₹1,325.05 on the BSE, significantly higher than the issue price of ₹1,008.

Stock of the company hit its peak of ₹1,580 apiece on September 18, 2024 on the NSE.

About the company

Founded in 1981, Emcure Pharmaceuticals is an Indian pharmaceutical company with a robust global presence in more than 70 countries. The company specializes in research, development, production and distribution of both branded and generic pharmaceutical products. It offers a diverse range of products across multiple therapeutic areas like oncology, cardiology, anti-infectives, diabetes and gynecology, among others. The company operates manufacturing facilities in India as well as various international markets and focuses on creating innovative healthcare solutions.

Growth prospects

The company is expected to pick up in organic growth and have optimistic growth prospects for the second half of the current fiscal year. In the H2 FY25, the growth of the company is anticipated to be driven by healthy organic performance, higher productivity and the expected resolution of most legal challenges, many industry experts noted.