5 Years, 325% Gains: The Pharma Powerhouse Everyone’s Talking About

Image Source: www.sudarshanpharma.com

Sudarshan Pharma Industries Limited (SPIL), a pharmaceutical firm from Mumbai, has given investors a stunning 325% return in the last five years, solidifying its position as a multibagger stock. The firm is in the limelight again after announcing its H2 and full-year FY2025 earnings, which highlighted strong growth in profits fueled by good export performance, margin growth, and strategic shifts in the pharma space.

Spectacular Five-Year Performance

SPIL's stock price has risen more than 325% in the past five years, beating several peers in the pharma industry.
The stock returned 358% from its 52-week low, reflecting its steady upward path.

FY2025 Financial Performance

Net profit for FY2025 rose 45% year-on-year to ₹16 crore, from ₹11.45 crore in the earlier year.
Net sales for the year were ₹505 crore, a 9% rise from the previous year.
In H2 FY2025, net sales increased 19% to ₹277 crore, while net profit rose 43% to ₹7 crore.
Net profit in Q4 FY2025 was ₹10.03 crore, more than 50% higher compared to the comparable quarter last year.

Operational Strengths and Strategic Initiatives

Growth in exports and better domestic sales were major performance drivers, with specific emphasis on selling active pharmaceutical ingredients (APIs) used again to improve margins.
The firm carried out a stock split in November 2024, dividing every ₹10 share into 10 shares of ₹1, with the objective of enhancing liquidity and retail participation.
Foreign Institutional Investors (FIIs) raised their holding to 18.45% in March 2025, indicating increasing institutional confidence.

Market Position and Sector Outlook

SPIL's market capitalization is ₹642 crore.
India's pharma industry is estimated to expand from $42 billion in 2021 to $66 billion in 2025 and to $130 billion by 2030, highlighting the industry's long-term potential.
SPIL exports to major markets such as the UK, Australia, Uzbekistan, Oman, Syria, Taiwan, and MENA regions, and has operations through subsidiaries dealing with R&D and diversified healthcare interests.

Share Price Movement

On May 2, the share price of SPIL closed at ₹26.66, down 1.99%-presumably due to profit booking following the multi-year rally.
On the subsequent trading day, the stock climbed about 5% in early trade, reaching an intraday high of ₹27.99.

Growth Strategy Going Forward

SPIL is working on increasing exports, increasing domestic medicine sales, and enhancing profit margins through strategic reselling of APIs.
The company has achieved a remarkable compound annual profit growth rate of 37% over the last five years.

"We are targeting increased exports and domestic medicine sales while also enhancing profit margins through careful API reselling practices."

Sudarshan Pharma Industries Limited, Investor Presentation

Conclusion

Sudarshan Pharma Industries Limited's phenomenal five-year journey and strong FY2025 results have reaffirmed its status as a multibagger stock. With strategic growth, sound finances, and upbeat sector outlook, SPIL continues to be a stock to keep an eye on in India's thriving pharma sector.

Sources: Times Now News, Goodreturns