Shares of Marksans Pharma surged more than 8 per cent in Wednesday’s trade, extending their gains for the third straight session amid heavy volumes. The stock jumped 8.27 per cent to hit a day high of Rs 67.40 — also its 52-week high — over its previous close of Rs 62.25. Support on the counter could be seen at Rs 61.65, an analyst said.
The company, in an exchange filing, said that a board meeting would be held on January 20 to consider and allot fully paid-up equity shares with a face value of Re 1, each, against the convertible warrants on a preferential basis. Marksans Pharma said it has received an intimation of warrants conversion into equity shares from two allottees: Mark Saldanha (promotor) — 10 lakh shares at a value of Rs 7.40 crore and OrbiMed Asia IV Mauritius FVCl Ltd — around 4.93 crore shares for Rs 364.99 crore.
The combined values came at around 5.03 crore shares for a value of Rs 372.40 crore, it added.
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“Expected approval by the board of directors in favour of the owner led to a strong uptrend in Marksans Pharma’s stock price. A daily close above Rs 64 could lead to targets of Rs 67-73.65 in the coming days,” said AR Ramachandran from Tips2trades.
However, investors should be slightly cautious as the stock now looks overbought, Ramachandran further said. He suggested keeping a stop loss placed at Rs 61.65, which is also the stock’s support zone.
A total of 8.26 lakh shares changed hands today, which was over five times higher compared to Marksans’ two-week average volume of 1.55 lakh shares. Turnover on the counter stood at Rs 5.39 crore, commanding a market capitalisation of Rs 2,752.63 crore
There were 23,46,630 buy orders on BSE, against sell orders of 1,17,759 shares. On NSE, 1.33 crore shares traded for a value of Rs 87.33 crore.
The stock was last seen trading higher than 5-day, 20-, 50-, 100- and 200-day moving averages. Marksans Pharma has an average target price of Rs 92, as per data publicly available with Trendlyne, suggesting an upside potential of 36.90 per cent. The stock’s one-year beta stood at 1 per cent, indicating average volatility on the counter.
Earlier on Monday this week, Marksans Pharma bought back 14,855 company shares, respectively, on BSE and NSE, at an average price of Rs 58.28 apiece. With this, the company has bought back a cumulative 64.74 lakh shares so far, it said in a filing to exchanges.
The company reported a consolidated net profit of Rs 60.12 crore in the September quarter (Q2 FY23), up 29.9 per cent on a year-on-year (YoY) basis. Revenue from operations surged 25.3 per cent to Rs 452.56 crore in Q2 FY23 over Q2 FY22. As of September 2022, promotors held a 48.60 per cent stake in the company.
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Marksans Pharma is an Indian pharmaceutical company having a global footprint. The company’s strengths lie in research, manufacturing and marketing of finished dosage pharmaceutical formulations.
Meanwhile, Indian equity benchmarks were trading slightly higher in late deals amid a volatile session.