Microcap stock jumps over 6% after board approves merger with Promoter Group Company

A micro-cap stock saw a notable 6.5 percent surge following the announcement of its merger with a promoter group company. This move has attracted attention as the company looks to strengthen its position in the market through strategic consolidation.

Price Movement

During Friday’s trading session, shares of Kopran Ltd reached an intra-day high of Rs.191.90 per share, rising 6.5 percent from its previous close of Rs.180.10 per share. However, the stock later declined and is currently trading at Rs.188.33 each. Over the past five years, the shares have delivered over 890 percent returns. 

Merger Details

The Board of Kopran Limited, based on the recommendation of the Audit Committee and the Committee of Independent Directors in their meetings held on March 20, 2025, has approved the merger of Kopran Laboratories Limited, a promoter group company, with Kopran Limited. This merger will be carried out through a Scheme of Amalgamation under the provisions of the Companies Act, 2013 and other applicable laws, involving both companies along with their shareholders and creditors.

As per the latest financials, Kopran Laboratories Limited (Transferor Company) had a paid-up capital of Rs.5.30 crores, net worth of Rs.72,59 crores lakhs, and turnover of Rs.69.60 crores as on December 31, 2024 (audited). 

Kopran Limited (Transferee Company) had a paid-up capital of Rs.4821.26 lakhs, net worth of Rs.491.24 crores, and turnover of Rs.629.20 crores as on March 31, 2024 (audited). Its unaudited financials as on December 31, 2024, reflect a paid-up capital of Rs.48.24 crores, net worth of Rs.508.74 crores, and turnover of Rs.457.24 crores.

Also read : Infra stock with revenue growth guidance of over 25% for FY26 to add to your watchlist

Product Offerings 

Kopran Ltd. features a diverse portfolio, offering over 100 dosage forms, including tablets, capsules, dry powders, suspensions, and injectables. The company places a strong emphasis on research and development (R&D) as a key driver of its growth strategy. By producing a significant portion of its active pharmaceutical ingredients (APIs) in-house, 

Global Reach

Kopran’s products are available in over 60 countries, spanning regions such as North America, Europe, Asia, and Africa. The company’s manufacturing facilities hold global accreditations, demonstrating its dedication to upholding high-quality standards.

Earnings Report

According to its latest financial update, Kopran Ltd reported consolidated revenue of Rs.166 crores in Q3 FY25, showing a 4.4 percent incline from Rs.159 crores in Q3 FY24. The company reported a decline in net profits, which dropped to Rs.10 crores, reflecting a 38 percent decrease from Rs.16 crores during the same period last year.

Ratio Analysis

The company has a Return on Capital Employed (ROCE) of 12.76 percent and a Return on Equity (ROE) of 10.64 percent. Its Price-to-Earnings (P/E) ratio stands at 18.28, lower than the industry average of 35.67. Furthermore, the company maintains a current ratio of 4.01, a debt-to-equity ratio of 0.25, and an Earnings Per Share (EPS) of Rs.9.84. 

Written by – Siddesh S Raskar

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