Pharma Stock Announces 10:1 Stock Split, November 18 Fixed As Record Date; BUY/SELL?

Mumbai's Sudarshan Pharma Industries Ltd (SPIL), a renowned contract manufacturer of generic formulations informed the market about the 10:1 stock split in order to improve share liquidity and increase the number of investors trading in the company's shares. It is noted that the company's board has approved the split of one equity share having a face value of 10 rupees into ten shares having one 1 rupee face value each, fully paid up. Small investors will be able to hold SPIL's stock and it will strengthen the varied investors owned by the company. The stock split will take effect on November 18, 2024. This date marks the end of every shareholder.

This announcement had the effect of SPIL's stock price increasing by 3.11% reaching Rs 415 per share as it was up from the previous close of Rs 402.5. SPIL's share recorded the most growth in the last one year reaching a high of Rs 452.70 per share and touching a low of Rs 58.20 per share. There has been a bullish run for SPIL in the market as the returns exceeded 500% from the 52-week low price. SPIL has managed to achieve a market cap of Rs 100 crores and has been growing with over 37% CAGR in profit over the last 5 years.

Sudarshan Pharma Industries Stock Split Record Date

"Pursuant to Regulation 42 of the SEBI (Listing Obligations And Disclosure Requirements) 2015, we wish to inform you that that pursuant to the shareholders' approval obtained through Postal Ballot, the Board of Directors of the Company has fixed Record Date as mentioned below in the table for the purpose of sub-division / split of 1 (one) Equity Share of the Company having face value of Rs. 10/- each into 10 (Ten) Equity shares of the company having face value of Re. 1 each," said the company in a stock exchange filing.

Earlier this year, SPIL completed the purchase of 209,100 equity shares and thereby acquired 51% of the shares of Ishwari Healthcare Private Limited. Post the acquisition, Ishwari Healthcare became a subsidiary company of SPIL. Ishwari Healthcare manufactures and sells medical and surgical instruments & healthcare products and this expanded the scope of SPIL's business operations as well. The purchase is consistent with the company's expansion plans as it broadens SPIL's scope of operations into multiple more activities in the healthcare space.

Sudarshan Pharma Industries Ltd was established in 2008 and has developed into an important player in the industry of contract manufacturing which spans specialty chemicals, intermediates, active pharmaceutical ingredients [APIs], pharmaceutical generics, and bulk supplies. SPIL Client's portfolio includes an array of Indian Companies and institutional clients for whom SPIL has developed a variety of pharmaceutical formulations. SPIL also sells branded products through its division Vimac Healthcare. The Company has a wide range of products consisting of 96 items of which 56 are registered with the 'R' trademark.

The stock split is a reflection of the effort of the Management of SPIL to enhance value for the Company's shareholders by increasing the affordability of the stock and broadening its retail holders. This also goes with the company's developmental path and strategic vision in which it intends to keep offering It's clients, and healthcare and pharmaceutical solutions of the highest quality.

Sudarshan Pharma Industries Share Price Target

"Sudarshan Pharma stock price is bearish on the Daily charts with strong resistance at 427. A Daily close below support of 380 could lead to a target of 326 in the near term," said A R Ramachandran, Independent Research Analyst.

Disclaimer

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