Multibagger pharma stock declares 2:1 bonus shares, net profit jumps 182% in Q2

With a market valuation of ₹509.10 Cr, Zim Laboratories Ltd. is a small-cap company that engages in the pharmaceutical industry. The firm is involved in the development, production, and delivery of peculiar generic pharmaceuticals in oral solid doses in addition to providing finished formulations (FF) and pre-formulation intermediates (PFI) for a number of major therapeutic categories. The company has released its Q2 earnings along with a 2:1 bonus share issuance.

The company has said today in a stock exchange filing that its Board of Directors has considered and approved “Increase in Authorized Share Capital of the Company from Rs. 25,00,00,000/- (Rupees Twenty-Five Crores Only) divided into 2,50,00,000 (Two Crores and Fifty Lakhs Only) Equity shares of ₹10/- (Rupees Ten only) each to Rs. 75,00,00,000/- (Rupees Seventy-Five Crores Only) divided into 7,50,00,000 (Seven Crores Fifty Lakhs Only) equity shares of Rs. 10/- (Rupees Ten only) each and consequent amendment to Clause V of the Memorandum of Association of the Company, subject to the approval of the Shareholders in the General Meeting; and Issuance of Bonus Shares in the proportion of 2 (TWO) Equity Shares of ₹10/- each for every 1 (ONE) existing Equity Share of ₹10/- each held by the Shareholders of the Company as on the record date, subject to the approval of the Shareholders in the General Meeting and Statutory/ Regulatory approvals, other approvals, consents, permissions, as may be necessary.”

Bonus share details of Zim Laboratories as per the data available on stock exchanges

Total number of securities proposed to be issued or the total amount for which the securities will be issued (approximately): 3,24,83,876 Equity shares of Rs. 10 each.

Whether bonus is out of free reserves created out of profits or share premium account: The Bonus shares would be issued out of the Securities Premium Account available as at 31st March, 2022.

Bonus Ratio: 2:1 i.e., 2 (Two) Equity Share of Rs.10 each for every 1 (One) fully paid-up Equity Share of Rs.10 each

Pre-Bonus Issue paid-up Share Capital: Rs. 16,24,19,380 divided into 1,62,41,938 Equity Shares of Rs. 10 each.

Post-Bonus Issue paid-up Share Capital: Rs. 48,72,58,140 divided into 4,87,25,814 Equity Shares of Rs. 10 each.

Free Reserves and/or Share Premium Required for implementing the Bonus Issue: An amount of Rs. 32,48,38,760 would be capitalized from Securities Premium Account for issuance of Bonus Shares.

Estimated date by which such bonus shares would be credited/dispatched: Subject to obtaining shareholders approval and Statutory/ Regulatory approvals, other approvals, as may be necessary, the Bonus shares will be credited/ dispatched within 2 months from the date of the Board approval i.e. on or before 11th January, 2023.

On a standalone basis, the company declared a net sales of ₹99.26 Cr in Q2FY23 compared to ₹75.72 Cr posted in Q2FY22, representing a YoY growth of 31.08%. The company declared a net income of ₹100.70 Cr in the quarter ended September 2022 compared to ₹76.61 Cr posted in the same quarter last year, representing a YoY growth of 31.44%. The company declared a total expense of ₹92.54 Cr in Q2FY23 compared to ₹73.68 Cr in Q2FY22, representing a YoY jump of 25.59%. The company declared a profit before tax (PBT) of ₹8.15 Cr in Q2FY23 compared to ₹2.92 Cr in Q2FY22, representing a YoY gain of 179.10%. The company declared a net profit of ₹5.65 Cr in Q2FY23 compared to ₹2 Cr posted in Q2FY22, representing a YoY growth of 182.50%. The EPS climbed to ₹3.49 per share in Q2FY23 compared to ₹3.47 in Q1FY23 and ₹1.24 in Q2FY22.

On a consolidated basis, the company declared a net sales of ₹99.40 Cr in Q2FY23 compared to ₹77.47 Cr posted in Q2FY22, representing a YoY growth of 28.30%. The company declared a total income of ₹100.82 Cr compared to ₹78.34 Cr posted in Q2FY22, representing a YoY growth of 28.69%. The company declared a total expense of ₹92.86 Cr in Q2FY23 compared to ₹74.14 Cr posted in Q2FY22, representing a YoY gain of 25.24%. The company declared a PBT of ₹7.95 Cr in Q2FY23 compared to ₹4.20 Cr posted in Q2FY22, representing a YoY gain of 89.28%. The company declared a net profit of ₹5.44 Cr in Q2FY23 compared to ₹3.25 Cr posted in Q2FY22, representing a YoY growth of 67.38%. The EPS climbed to ₹3.35 per share in Q2FY23 compared to ₹3.17 in Q1FY23 and ₹2 in Q2FY22.

The shares of Zim Laboratories Ltd closed on Friday at ₹313.50 apiece, up by 0.064% from the previous close of ₹313.30. The stock has produced a multibagger return of 146.40% over the past five years, and a multibagger return of 282.49% during the past three years. The stock has generated a multibagger return of 150.90% over the last year, and so far in 2022, it has produced a multibagger return of 163.56% on a YTD basis.