Aarti Drugs to buy back 6,65,000 equity shares; stock hits 52-week high

Aarti Drugs' borad has set the buyback price at Rs 900 per equity share.

Aarti Drugs' buyback of shares, image- Pixabay

Shares of Aarti Drugs, the domestic pharmaceutical company, zoomed over 12 per cent in Monday's trading session and hit a 52-week high of Rs 575 apiece on the BSE. The stock rallied after the company's board approved the buyback of 6,65,000 equity shares. The buyback price is set at Rs 900 per equity share.

At around 10:15 AM, shares of Aarti Drugs were trading 12.45 per cent higher at Rs 574.15 apiece on the BSE. The market capitalisation of the company stood at Rs 5,299.96 crore.

Aarti Drugs buyback details

The buyback amount stands at Rs 59.9 crore; the buyback will be at a 76.3 per cent premium from the current price of Rs 510.6 apiece. It will be done through a tender route, and the record date is fixed as August 4, 2023.

Aarti Drugs Q1 results

The Indian pharmaceutical company reported a 37.14 per cent increase in profit after tax (PAT) at Rs 48 crore in the June quarter of 2023, compared to Rs 35 crore logged in the corresponding quarter of the previous year. The company logged revenue of Rs 661 crore against Rs 622 crore, up 6.3 per cent.

Margins, a key measure of profitability, for the company stood at 12.7 per cent in the June quarter, compared to 10.8 per cent a year ago. The earnings before interest, taxes, depreciation, and amortisation, or EBITDA, of the company stood at Rs 84 crore against 67.18 crore, up 25 per cent in the year-ago period.

What do analysts suggest?

"The stock has performed well since pharma stocks started an upward trend. One should definitely participate in the buyback, as it is being done at a premium," said Zee Business panellist Sandeep Jain.