1:20 Bonus Shares: Pharma stock jumps 3% after it sets record date for bonus issue

A leading pharma stock owned by Ashish Kacholia surged 3 percent following the announcement of the record date for its 1:20 bonus issue. This move is expected to enhance shareholder value and improve liquidity, offering existing shareholders additional shares in proportion to their holdings. The bonus issue reflects the company’s strong financial position and commitment to rewarding investors.

Price Variation

During Tuesday’s trading session, shares of Beta Drugs Ltd jumped to an intraday peak of Rs.1,804.95 each, reflecting a 2.8 percent increase from the prior closing price of Rs.1,755.80 per share. However, the stock retreated later and is currently trading at Rs.1,798.80 apiece. 

Record Date 

Beta Drugs Ltd. has announced that its shareholders, through a Special Resolution passed via Postal Ballot, have approved the issuance of bonus shares in the ratio of 1:20. This means that for every 20 existing fully paid-up equity shares of Rs.10 each held by shareholders, they will receive 1 new fully paid-up equity share of Rs.10 each. 

The Board of Directors has set Wednesday, 26th March 2025, as the Record Date to determine the eligible shareholders for the bonus shares. The deemed allotment of the bonus shares will be made on 27th March 2025.

Manufacturing and R&D Capabilities

The company operates advanced manufacturing facilities that comply with WHO-GMP standards. These facilities specialize in the production of oncology products and have the capabilities to develop innovative drug delivery systems and non-biological complex drugs.

BDL focuses on research and development, with efforts directed towards the development of new products, including New Innovative Biologics (NIBs) and PARP inhibitors. The R&D team works closely with accredited institutes to conduct bio-analytical studies supporting preclinical and clinical trials.

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Domestic and International Growth 

The company has achieved impressive growth across its various segments. Domestic own-brand sales have increased by 30 percent, reflecting strong performance in the local market. International business saw a remarkable 141 percent growth, demonstrating significant expansion in global markets. Additionally, the API (Active Pharmaceutical Ingredient) business experienced a 20 percent growth, contributing to the overall positive performance.

Financial Overview

According to its recent financial updates, Beta Drugs Ltd reported consolidated revenue of Rs.180 crores in H1 FY25, marking a 28 percent increase from Rs.141 crores in H1 FY24. Similarly, the company saw a 20 percent incline in net profit to Rs.24.00 crores, compared to Rs.20.00 crores in the same period. 

Ratio Analysis

The company has a Return on Capital Employed (ROCE) of 28.54 percent and a Return on Equity (ROE) of 22.67 percent. Its Price-to-Earnings (P/E) ratio stands at 46.33, higher than the industry average of 30.53. Furthermore, the company maintains a solid current ratio of 2.36, a debt-to-equity ratio of 0.11, and an Earnings Per Share (EPS) of Rs.37.9. 

Shareholding Pattern

As of December 2024, the shareholding pattern of Beta Drugs Ltd shows that promoters hold 66.73 percent stake, while Foreign Institutional Investors hold 1.15 percent, Domestic Institutional Investors hold 0.17 percent, and Retail Investors hold 31.95 percent stake in the company. Ace investor Ashish Kacholia holds 5.78 percent stake in Beta Drugs.

Written by – Siddesh S Raskar

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