Pharma stocks jump up to 7% after key acquisition & pharma sector’s exemption from new tariffs

Two pharmaceutical stocks witnessed strong gains following the impact of US tariffs and recent strategic acquisitions. Investor sentiment remained upbeat as these developments are expected to enhance market opportunities and strengthen business growth. The surge reflects optimism surrounding the sector’s expansion and resilience amid global trade shifts.

Price Variation

During Thursday’s trading session, shares of Caplin Point Laboratories Ltd reached an intra-day high of Rs.2,111.20 each, rising 6.7 percent from the previous closing price of Rs.1,977.45 per share. However, the shares have retreated since then, trading at Rs.2,034.80 apiece.

During Thursday’s trading session, shares of Lupin Ltd reached an intra-day high of Rs.2,150.00 each, rising 7 percent from the previous closing price of Rs.2,009.70 per share. However, the shares have retreated since then and are trading at Rs.2,088.50 apiece.

Acquisition Details 

Caplin Point Far East Limited, a material subsidiary of Caplin Point Laboratories Limited, has acquired Neoethicals Chile SpA, a pharmaceutical marketing and distribution company based in Chile. The acquisition involved the purchase of 3,000 equity shares at their face value of 1,000 Chilean Pesos per share, amounting to a total cost of 3 million Chilean Pesos (equivalent to USD 3,000).  

Neoethicals Chile SpA operates within the pharmaceutical marketing and distribution industry, facilitating the supply of healthcare products in the Chilean market. The company’s financial performance has shown significant growth, with a turnover of 278.56 million Chilean Pesos (USD 295,222) in 2024, compared to 49.99 million Chilean Pesos (USD 59,585) in 2023. 

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Lupin’s Acquisition

Lupin Healthcare (UK) Limited has acquired Renascience Pharma Limited (RPL), a UK-based pharmaceutical company, for GBP 12.3 million, making it a wholly owned subsidiary.  

RPL, incorporated in 2015, supplies four niche BioGenerics products in the UK, with XAQUA and OTIGO contributing nearly 90 percent of its revenue. The company reported a turnover of GBP 3.51 million in FY 2025, up from GBP 1.87 million in FY 2024 and GBP 0.72 million in FY 2023.  This acquisition expands Lupin’s specialty pharmaceutical portfolio in the UK. The transaction is not a related party deal, and no promoter group has any interest in it.

Financial Overview

Caplin Point Far East Limited posted a consolidated revenue of Rs.493 crores in Q3 FY25, registering a 13 percent increase from Rs.436 crores in Q3 FY24. Additionally, the company reported a net profit of Rs.140 crores for the quarter, reflecting a 17 percent rise compared to Rs.120 crores recorded during the same period last year.  

Lupin Ltd announced consolidated revenue of Rs.5,768 crores for Q3 FY25, representing an 11 percent growth from Rs.5,197 crores in Q3 FY24. The company also reported net profits of Rs.859 crores for the quarter, marking a 39 percent jump from Rs.619 crores posted in the corresponding quarter of the previous year.

Ratio Analysis

Caplin Point Labs has a Return on Capital Employed (ROCE) of 24.06 percent and a Return on Equity (ROE) of 19.41 percent. Its Price-to-Earnings (P/E) ratio stands at 29.17, lower than the industry average of 32.03. Furthermore, the company maintains a current ratio of 6.1, a debt-to-equity ratio of 0, and an Earnings Per Share (EPS) of Rs.67.79. 

Lupin has a Return on Capital Employed (ROCE) of 18.32 percent and a Return on Equity (ROE) of 16.79 percent. Its Price-to-Earnings (P/E) ratio stands at 31.98, lower than the industry average of 39. Furthermore, the company maintains a current ratio of 2.84, a debt-to-equity ratio of 0.22, and an Earnings Per Share (EPS) of Rs.62.83. 

Written by – Siddesh S Raskar

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