The company has signed a multi-year contract with a leading global pharma company, which entails development and supply of a portfolio of niche APIs over a period of 10 years, Hikal said in the release. It did not name of the global firm or the value of the deal. The scrip rallied 10 per cent and got locked at Rs 313 even as BSE benchmark Sensex traded 188 points, or 0.39 per cent, higher at 48,441. The stock had closed at Rs 285 on Tuesday.
The stock has soared as much as 120 per cent this financial year and has delivered up to 225 per cent return in last one year rising from the 52-week low of Rs 97.15, hit on May 12, 2020.
Analysts are hoping for a good March quarter show from the company. “We expect Hikal to post strong revenue growth of 28.2 per cent YoY, led by improvement in performance from both the pharmaceutical and crop protection businesses,” BP Equities said in a report dated May 2. “Ebitda margin should improve by 46 bps at 19.1 per cent from 18.6 per cent in Q4FY20. Net profit is likely to grow by 70% YoY to Rs 41.7 crore from Rs 24.5 crore on account of better operational performance and lower finance cost,” the brokerage said.
With the new deal, Hikal is entering a niche area of chemistry and products, thereby bolstering its animal health vertical. Hikal said the company and its customer would partner and jointly invest in the Panoli site in Gujarat to set up a multi-purpose manufacturing asset to manufacture these APIs for next 10 years.