Penny stock hits 5% upper circuit after securing ₹517 Cr Pharma Sourcing Deal with Thai Firm

During Wednesday’s trading session, shares of this company engaged in the manufacturing of pharmaceutical products hit a 5 percent upper circuit, following the company’s announcement of securing Rs. 517 Crore Global Sourcing Mandate.

With a market cap of Rs. 154.6 crores, the shares of Welcure Drugs & Pharmaceuticals Limited hit a 5 percent upper circuit at Rs. 13.74 on BSE, as against its previous closing price of Rs. 13.09. The stock has delivered multibagger returns of around 149 percent in one year, and has gained by over 23 percent in the last one month.

What’s the News

Welcure Drugs & Pharmaceuticals Limited has executed a definitive mandate with Fortune Sagar Impex Company Limited, a client based in Thailand, to handle the sourcing and procurement of pharmaceutical products on their behalf. The total value of this engagement is nearly Rs. 517 crore, according to regulatory filings with the BSE.

Under this agreement, Welcure will act as a fee-based procurement partner, helping the overseas client source multiple finished-dosage SKUs (Ex-Works model). Ex-Works model, meaning Welcure’s role is limited to sourcing and arranging goods from manufacturers  the buyer handles the rest.

In return, Welcure will earn a fixed 5 percent commission on the cost of the goods, translating into an estimated service revenue of around Rs. 25.85 crore, which is expected to be recorded during FY26.

The entire project will be carried out on a call-off basis, and the first batch is expected to move immediately, once the client completes initial pre-funding as per the terms of the agreement. The remaining tranches are scheduled to be wrapped up by 30th September 2026.

The responsibility for packaging, labelling, shipping containers, insurance, freight, and securing regulatory clearances in the destination country lies entirely with the buyer.

This deal adds to Welcure’s fee-based income portfolio and allows the company to grow without taking on any financial risk or exposure on its balance sheet. The company will provide further updates as and when new batches are activated.

Financials & More

Welcure Drugs reported a significant growth in the revenue from operations, experiencing a rise of nearly 2309 percent QoQ, increasing from Rs. 0.88 crores in Q3 FY25 to Rs. 21.2 crores in Q4 FY25. Similarly, during the same period, the company’s net profit increased from Rs. 0.04 crores to Rs. 2.54 crores, representing a rise of around 6250 percent QoQ.

Welcure Drugs & Pharmaceuticals Limited includes products like bulk drugs, drug intermediates, and pharmaceutical formulations. It manufactures over a hundred varieties of tablets, capsules, and dry syrups, sulpha drugs, vitamins, analgesics, etc.

Written by Shivani Singh

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