Mumbai (Maharashtra) [India], November 21: Balaxi Pharmaceuticals Ltd. experienced a significant surge in its stock price on Friday, climbing approximately 8.5 percent to Rs 39.40 per share, up from its previous closing of Rs 35.98. This upward movement comes on the heels of a series of strategic developments and a robust financial performance, positioning the IPR-based pharmaceutical company for future growth. The company’s shares, which have traded between a 52-week high of Rs 85.58 and a low of Rs 35.67, are currently trading at a Price-to-Earnings (PE) ratio of 12x, notably lower than the industry PE of 32x, suggesting potential undervaluation.
Balaxi Pharmaceuticals, an IPR-based entity, is dedicated to the production, stocking, selling, and supply of both branded and generic medicines. With an impressive portfolio encompassing 610 pharmaceutical service registrations, the company offers a wide array of products, including tablets, injectables, liquids, and capsules. These products are meticulously sourced from WHO-GMP-certified contract manufacturers across India, China, and Portugal, ensuring high standards of quality and efficacy. The company boasts a market capitalization exceeding Rs 200 crore.
The company’s financial results underscore a period of significant turnaround and expansion. For the second quarter of Fiscal Year 2026 (Q2FY26), Balaxi Pharmaceuticals reported net sales of Rs 56.18 crore and a net profit of Rs 0.21 crore. The half-yearly results for H1FY26 showed net sales of Rs 126.92 crore and a net profit of Rs 0.50 crore. A remarkable year-on-year improvement was observed in its annual results for Fiscal Year 2025 (FY25), where net sales increased by 22 percent to Rs 293 crore compared to FY24. Most notably, the company transitioned from a net loss of Rs 2 crore in FY24 to a net profit of Rs 25 crore in FY25, marking an extraordinary increase of 1,350 percent.
In a significant strategic move, Balaxi Pharmaceuticals Limited has approved an equity infusion of up to USD 4 million into its wholly-owned Dubai subsidiary, Balaxi Global FZCO. This capital injection is earmarked to bolster the subsidiary’s operational capabilities and fuel business expansion initiatives. Complementing this investment, the company’s Board of Directors received an update on the substantial progress at its inaugural pharmaceutical formulation plant in Jadcherla, Hyderabad. The facility’s construction is complete, and the company has secured its test manufacturing license. Crucial steps, including water system validation and vendor qualification, have been successfully finalized, paving the way for the production of initial test batches. Products such as Paracetamol 500 mg and Piroxicam 20 mg have been manufactured and are now undergoing vital stability studies, signaling a key advancement in the company’s in-house manufacturing prowess.
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