Debt-Free Pharma Stock Locked At 20% Upper Circuit, FII & DII Raise Stake In Q2; Do You Own?

Only non-beta-lactam tablets, capsules, ointments/creams, dry-powder suspensions, sterile ophthalmic ointments, SVP injectables, oral liquids, dry-powder injections, eye/ear drops, etc. are produced by Lincoln Pharmaceuticals, which was founded in 1979 and is headquartered in Khatraj, Gujarat. One of Gujarat, India's top healthcare organisations is Lincoln Pharmaceuticals Limited. Since its founding in 1979, the firm has created more than 600 formulations throughout 15 therapeutic categories, and it now has over 1,700 registered medications and 700 more in development.

The firm is well-known in the following areas: cardiac & central nervous system, gynaecology, respiratory system, anti-infective, anti-bacterial, anti-diabetic, and anti-malaria. The firm exports to over 60 countries and has a significant presence in the home market. The company operates two cutting-edge production facilities in Mehsana, Gujarat, and Khatraj, Ahmedabad.

On December 3, 2024, Lincoln Pharma's stock price wrapped up 20% higher at Rs. 763.20 per share at the upper circuit limit, with high volumes of almost 11 lakh shares on the NSE and BSE. Less than one lakh is the average volume per day. The market capitalisation grew by more than 1500 crore, making it the perfect choice for institutions making investments. There are market rumours that FIIs would like the stock and purchase shares that are offered at a very low price and have high growth potential. More purchases are anticipated in the days ahead.

The FII + DII investment in the corporation increased steadily from less than 1% in March 2022 to more than 5.2% in September 2024. As of September 2024, it has investments of over Rs. 164 crore with a high return ratio, and a net profit of over Rs. 100 crore annually, and no debt. From FY13 to FY23, Lincoln Pharmaceuticals Limited reached the significant milestone of consistently reporting profit growth.

According to Morningstar's study, it is one of just 16 firms out of the 4,200+ listed companies on the Indian stock exchange that have done so. The company has produced a strong compound annual growth rate (CAGR) of more than 22% in net profits, 19% or more in EBITDA, and more than 10% in revenue throughout the ten years from FY13 to FY23.

Healthy cash accruals, no-term debt, and solid return ratios all contribute to the company's solid liquidity situation. Lincoln Pharma sells to more than 60 nations in Southeast Asia, Latin America, Central and North America, and East and West Africa. In addition to actively seeking product registration for its Cephalosporin factory in Mehsana, the firm is well-positioned for future worldwide development with its recent entry into the Canadian market and approvals from TGA-Australia and EU GMP. The company's sales goal of Rs. 750 crore for FY26 is in line with these efforts.