Small-cap pharma stock Sigachi Industries gained over 2 per cent in intra-day trade on Friday, January 3, after CARE Ratings reaffirmed its rating action on the company.
In an exchange filing on Friday, the company informed that CARE Ratings Limited reaffirmed its rating on the long-term and short-term bank facilities. CARE has assigned CARE A-; Stable to Rs 75.38 crore long-term bank facilities and CARE A-; Stable / CARE A2 to Rs 51.75 crore long-term / short-term bank facilities, respectively.
The rating agency reaffirmed its action following recent developments, including the operational and financial performance of the Sigachi Industries for FY24 and H1-FY25, and the possible impact of the same on the credit profile of your company, CARE said.
Stock Impact
Sigachi Industries, part of the BSE Smallcap index, witnessed a 2.02 per cent increase in its share price to Rs 51.49 apiece.
Sigachi Industries share price opened at ₹50.48, slightly higher than the previous close of Rs 50.47 apiece. It then extended gains to hit the day’s high of Rs 51.49.
Despite today’s gains, Sigachi Industries have fared poorly in the last one year, eroding investor wealth by 14 per cent. Even in the last one month alone, the stock has lost 5 per cent.
Sigachi Industries stock is almost 90 per cent away from its 52-week high of Rs 95.94 touched in February 2024.
For the second quarter of the financial year 2024-25 (Q2FY25), the company witnessed a 38.10 per cent year-on-year rise in revenue from operations to Rs 137 crore while its profit after tax (PAT) jumped 39% YoY to Rs 21 crore.
The earnings before interest, tax, depreciation and amortisation (Ebitda) margins witnessed a 19 bps growth YoY to 21.38 per cent while PAT margins improved by 159 bps to 16.81%.
Incorporated in 1989, Sigachi Industries operates in the pharmaceutical industry, with a presence in Active Pharmaceutical Ingredients (APIs), Food and Nutrition, Operations & Management, and the Personal Care industry.
