Marksans Pharma shares rally up to 12% after MIT buys 66 lakh shares

Marksans Pharma shares rallied up to 12% on Tuesday, April 16, following the Massachusetts Institute of Technology (MIT) buying 66 lakh equity shares, or 1.45% stake, in the pharmaceutical firm for ₹104 crore.

According to exchange data, MIT bought a 1.45% equity stake or 66 lakh shares at a price of ₹158 per share, taking the total deal size to ₹104.28 crore on Monday.

Marksans Pharma shares dropped 4.29% to close at ₹155.85 on Monday.

Recovering from the previous session’s losses, shares of the company opened higher at ₹159 and rallied a further over 11% to hit a high of ₹175.45 per share. Around 43 lakh shares of the company changed hands on NSE.

Marksans Pharma shares jump over 100% in past year

With Tuesday’s gains, Marksans Pharma shares have rallied around 116% in the past year. The stock traded at a 52-week low of ₹70.55 on May 22, 2023. Shares however are trading around 4% down from the 52-week high level of ₹179.30 hit on January 3, 2024.

Marksans Pharma reported a 22% year-on-year growth in revenue for the third quarter of 2023-24, primarily driven by the market share expansion and new product launches.

The company saw a consistent improvement in margin profile, with an EBITDA margin of 22.7% in Q3, led by operating leverage, consistent cost optimisation initiatives, and a reduction in raw material costs.

Its net operating cash flow for nine months stood at ₹169 crore, driven by an improved EBITDA margin and better collection. The company also saw improved volume growth across all key markets, especially from the US.

Marksans Pharma shares were trading 11.8% up at ₹174.3 per share at 2.30 pm on the NSE.