Dark horse stock of the day: Sakar Healthcare jumps 20% in a day

The shares of Sakar Healthcare Limited experienced a sharp rise today. The stock opened at Rs 297.80, which was 10% higher than the previous day’s closing price of Rs 270.55. During the intraday session, the stock surged by 20% with significant trading volume.

As of the current moment, while writing this article, the shares of the company are up by Rs 54.10, which is Rs 324.65 on the NSE. It is currently locked into an upper circuit price limit of 20%.

The stock’s 52-week highs and lows are recorded at Rs 324.65 and Rs 167, respectively. With a market capitalization of just Rs 618.33 crore, the stock has displayed remarkable performance in recent times, delivering a 27% return in just a week and an impressive 65% return in the last year.

Furthermore, in the last three years, it has delivered a multibagger return of 490% for its investors.

On October 14, the stock touched its all-time high of Rs 295, and since then, it has been in a consolidation phase. It took almost 294 days to cross this price level, and today, it broke the consolidation with a significant gap up.

Screenshot 2023-08-04 135512

Financial Performance
If we examine the company’s financials, in FY23, revenue from operations experienced an increase of 4.02% YoY, going from Rs 128 crore to Rs 133 crore. The operating profit of the company increased from Rs 29 crore to Rs 33 crore, and the operating profit margin went up from 23% to 25% in FY23.
Whereas the net profit of the company amounts to Rs 13 crore, the net profit margins stood at 10% in FY23.
The company’s return on capital employed (ROCE) and return on equity (ROE) are at 9% and 8.5%, respectively. The Book value of the company is Rs 91, whereas the Price to book value is 3.6 times. Furthermore, the price-to-earnings ratio is 48.4 times.
Below is the graphical presentation of the trading volume and delivery volume of the stocks:
Screenshot 2023-08-04 135630

On Thursday, there was a significant surge in both trading volume and delivery volumes. The total trading volume was 1,07,795 shares, while the delivery percentage accounted for 73.4%, which equates to 79,089 shares.

Business Overview
Sakar Healthcare Limited, an Indian company, specializes in the production of pharmaceutical products. They offer a wide range of medications, including liquid orals, cephalosporin tablets and capsules, dry powder syrup, dry powder injections, liquid injectables (SVP) in ampoules and vials, oral solid dosages, and lyophilized injections.

It also operates as a contract development and manufacturing organization (CDMO), they have secured approximately 321 product registrations in various countries. Moreover, their manufacturing unit has received accreditation from regulatory authorities in 14 countries, including Uganda, Kenya, Yemen, Ethiopia, Congo, Zimbabwe, Nigeria, Malawi, Philippines, Peru, Vietnam, and Cote D’Ivoire.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.