Up 552% in 4 months! Sudarshan Pharma stock nears record high after 1:10 stock split announcement

Shares of Sudarshan Pharma Industries surged nearly 2% in early morning trade on Tuesday, October 1, reaching ₹419 per share on BSE and approaching their all-time high of ₹434. This increase follows the approval of a stock split by the company’s board of directors in the ratio of 1:10.

"Sub-division/split of the company's 1 (one) equity share having a face value of Rs. 10/- (Rupees Ten only), each fully paid-up, into 10 (ten) equity shares of the company having a face value of Rs. 1/- (Rupee One only), each fully paid-up, subject to the approval of shareholders and such other approvals as may be required. Consequent to the sub-division of the face value of the equity shares of the company, the alteration of the capital clause of the Memorandum of Association of the company is subject to the approval of shareholders of the company," the company said in its regulatory filing.

In August, the company established a subsidiary, Sudarshan Maven Pharma, focusing on the development and manufacturing of a wide range of pharmaceuticals, active pharmaceutical ingredients, and intermediates. The company also acquired a 100% stake in Ratna Lifesciences Pvt Ltd, which will facilitate Sudarshan Pharma’s entry into the oncology business.

Additionally, the company is in the process of acquiring adjacent land in the Maharashtra Industrial Development Corporation (MIDC) area to expand its overall plant capacity. This land acquisition is expected to significantly boost Ratna Lifesciences' annual turnover, increasing it by approximately ten times from its current capacity.

Stellar performance

The company’s shares have experienced a significant upward trend over the past four months, rising from ₹64.25 to the current level of ₹419, which translates to an impressive gain of 552%. Notably, in September alone, the shares surged by 123%, building on a 20% increase in August and a 90% rise in July.

Sudarshan Pharma Industries operates in the pharmaceutical and specialty chemicals sectors, establishing a strong presence in both domestic and international markets. Its products are exported to various countries, including the UK, Australia, Uzbekistan, Syria, Oman, Taiwan, and the MENA region.

In addition to these core businesses, the company is engaged in contract manufacturing and the outsourcing of generic pharmaceutical formulations and medicines to healthcare institutions, government bodies, NGOs, and hospitals. SPIL has developed its own distribution network and salesforce dedicated to the ethical marketing of pharmaceutical formulations and products in both domestic and international markets, as per the company's website. 

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