MUMBAI: Renowned investor Ashish Kacholia has made a big bet on a Haryana-based microcap pharmaceutical company. Investor ace recently increased its stake by 2.03% to bring its total stake to 12.12%, making it one of the biggest bets in its portfolio.

Beta Drugs is a pharmaceutical company specializing in brand name generics in niche oncology therapies. The company is listed on the National Stock Exchange’s Emerge platform for small and medium-sized enterprises.

Over the past year, the stock has risen nearly 400% amid strong earnings for the year ended March 31, 2021, and is hopeful that she will move onto the NSE board.

Average over the counter volume has jumped 25% in 2021 so far to reach 8,918 shares from that of 2020. The share currently boasts a market cap of Rs 390 crore with a price / earnings ratio on 12 months of 33 times. . Being a company listed on NSE Emerge, the stock currently has no analyst coverage.

In the previous fiscal year, the consolidated income of the microcap company jumped 28 percent to Rs 116 crore, while consolidated operating profit rose 38 percent to Rs 25.2 crore. Beta Drugs also managed to increase its margins by 200 basis points to 22% in the previous year.

The company also managed to significantly reduce its short-term borrowing in 2020-2021 and saw a 230% increase in cash and cash equivalents to Rs 4.1 crore.

“The overall improvement in EBITDA is explained by higher sales of branded products and exports. Cost rationalization initiatives and backward integration due to the acquisition of Adley Lab have also increased margins in all areas, ”said Rahul Batra, President and CEO of Beta Drugs, in the latest annual report. of the society.

Batra said the company is witnessing “good momentum” in its four business segments: private label generics, exports, OEMs and active pharmaceutical ingredients; and each of the segments is “on course for strong growth in 2021-2022”.

“We expect the company to continue to be able to gradually expand its reach in the market and improve its market share,” Beta Drugs said in its annual report.

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