Multibagger pharma stock up over 230% in 3 years, Board declares 150% dividend

RPG Life Sciences, a small-cap firm, closed on Friday with a market valuation of ₹1,382.08 Cr. A division of RPG Enterprises, RPG Life Sciences is an integrated pharmaceutical company that operates on domestic as well as international markets.

RPG Life Sciences said in a stock exchange filing that its Board of Directors have “Recommended equity dividend of Rs. 12 per share of Rs. 8/- each (150%) for the financial year ended March 31, 2023, which will be paid to the shareholders within 30 days of declaration of the same at the ensuing Annual General Meeting.”

RPG Life Sciences reported a total income of Rs. 120.33 crores during the period ended March 31, 2023 as compared to Rs. 105.06 crores during the period ended March 31, 2022, representing a YoY gain of 14.53%. The company posted a net profit of ₹10.35 crs during Q4FY23, up by 37.63% YoY from ₹7.52 Cr in Q4FY22. RPG Life Sciences said its EPS was Rs 6.26 during the quarter under review, up by 37.58% from ₹4.55 recorded in the year-ago quarter.

The company said its revenue from operations at ₹118.49 crores registered a growth of 14% Y-o-Y for Q4 FY23 from ₹103.80 Cr in Q4FY22 and revenue from operations at ₹512.81 crores registered a growth of 17% Y-o-Y for full-year FY23 from ₹440.16 Cr in FY22.

Mr. Yugal Sikri, Managing Director, RPG Life Sciences Ltd. said, “In Q4 FY23, Company maintained its upward trajectory of overall robust performance by posting yet another strong result despite the ongoing geo-political challenges impacting supply chain and costs. Revenue and PBT grew by a healthy 14% and 26% respectively Y-o-Y. EBITDA margins’ consistent upward trajectory has continued for the last 5 years, growing from 10.4% (FY19) to 15.9%(FY20) to 18.2% (FY21) to 20.3% (FY22) to 21.0% (FY23). The Company continues to remain debt-free with the highestever net cashflow generated from operations in full year FY23.”

“Domestic Formulations business, the biggest contributor to the company’s business, recorded robust growth both in value and volume - significantly and consistently ahead of the market. While our comprehensive life cycle management program for legacy brands is helping them register healthy growth, our new product portfolio comprising of newer and progressive segments is also witnessing an impressive uptake. Our foray into Rheumatology has strengthened our Specialty segment. Our MABs portfolio is continuing to post robust performance. Our digitalization initiatives are showing strong traction. Salesforce productivity continues to register healthy upward momentum across business segments,” Yugal Sikri said.

“International Formulations business has also shown robust growth, while emerging as another growth driver for the Company, registering healthy growth in both sales and profits. Company is investing in plant upgradation and capacity expansion in both plants as well as working on building healthy product pipeline to accelerate exports. Our relentless focus on achieving cost efficiencies in our operations, eye on sales hygiene, is helping us to consistently improve our margins. We are well on course to implement our Transformation Agenda to achieve our strategic goals,” Yugal Sikri further added.

On Friday, the shares of RPG Life Sciences closed on the NSE at ₹839 apiece level, up by 2.39% from the previous close of ₹819.45. In the last 5 years, the stock has generated a multibagger return of 111.52% and in the last 3 years, the stock has generated a multibagger return of over 230%. In the last 1 year the stock has gained 57.22% and on a YTD basis, it has fallen 1.28% so far in 2023. The stock touched a 52-week-high of ₹1,012.75 on (16-Nov-2022) and a 52-week-low of ₹450.55 on (12-May-2022).