Balaxi Pharmaceuticals Soars 14% After FIIs Acquire Over 16% Stake in Bulk Deal
Stock Rally on Strong FII Interest
Balaxi Pharmaceuticals Soars : Shares of Balaxi Pharmaceuticals Limited witnessed a sharp rally of nearly 14.2% on Tuesday following a significant bulk deal involving two foreign institutional investors (FIIs). The stock’s surge came after these investors collectively acquired over 16% stake in the company, amounting to approximately ₹48.2 crore.
At 10:41 a.m., Balaxi Pharma was trading at ₹55.65 on the National Stock Exchange (NSE), reflecting a 9% increase from its previous close of ₹51.16. The rally pushed the company’s market capitalization to ₹307.2 crore.
FIIs Show Strong Buying Interest
As per the latest NSE bulk deal data, Ebisu Global Opportunities Fund Limited acquired 45.21 lakh shares in Balaxi Pharmaceuticals, which translates to an 8.19% stake, for a total value of ₹24 crore at an average price of ₹53 per share.
Similarly, Unico Global Opportunities Fund Limited purchased 45.77 lakh shares, representing an 8.3% stake, amounting to ₹24.26 crore, also at ₹53 per share.
Major Selling Activity
On the other hand, two major investors offloaded their holdings in Balaxi Pharma at the same price. MGC Fund Limited sold 45.21 lakh shares (8.19%), while Elala India Opportunities Fund divested 45.77 lakh shares (8.3%), making way for the fresh FII inflows.
Financial Performance Snapshot
Balaxi Pharma has showcased notable revenue growth but faced profitability challenges in the latest quarter.
| Financial Metric | Q3 FY24 | Q3 FY25 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹60.8 Cr | ₹73.3 Cr | ↑ 20.6% |
| Net Profit | ₹12 Cr | ₹5.4 Cr | ↓ 55.2% |
| EBITDA | ₹13.5 Cr | ₹8 Cr | ↓ 41.4% |
| Operating EBITDA Margin | 22.25% | 10.81% | ↓ 1144 bps |
While revenue witnessed a 20.6% jump, net profit took a hit, declining by 55.2% YoY. The EBITDA also dropped significantly by 41.4%, leading to a margin contraction.
About Balaxi Pharmaceuticals
Balaxi Pharmaceuticals is an IPR-based pharmaceutical company specializing in the production, stocking, and distribution of both branded and generic medicines. The company operates in various international markets, ensuring a steady global demand for its products.
Key Financial Ratios & Stock Performance
Below are some key financial metrics of Balaxi Pharma that investors should consider:
| Metric | Value |
|---|---|
| Market Cap | ₹315 Cr |
| Current Price | ₹57.1 |
| 52-Week High/Low | ₹151 / ₹50.4 |
| Stock P/E | 12.0 |
| Book Value | ₹39.1 |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | 20.7% |
| ROE (Return on Equity) | -25.9% |
| Face Value | ₹2.00 |
| Promoter Holding | 66.0% |
| Price to Book Value | 1.48 |
| Debt to Equity | 0.15 |
| Pledged Percentage | 0.00% |
| Industry P/E | 26.2 |
| Graham Number | ₹66.2 |
| Intrinsic Value | ₹201 |
| RSI (Relative Strength Index) | 28.3 (Oversold) |
| EPS (Earnings Per Share) | ₹4.98 |
| Total Equity Shares | 5.52 Cr |
| PEG Ratio | – |
| 200 DMA (200-Day Moving Average) | ₹86.6 |
| Free Cash Flow (3Y) | ₹1.72 Cr |
| Free Cash Flow (5Y) | -₹15.1 Cr |
| Debt | ₹32.1 Cr |
| Return on Assets | -20.0% |
Stock Outlook and Investor Sentiment
Balaxi Pharma’s recent bulk deal activity suggests strong institutional confidence in the company’s growth prospects. However, the declining net profit and EBITDA margins raise concerns about profitability.
With an RSI of 28.3, the stock appears to be in the oversold territory, potentially indicating a buying opportunity for investors who believe in the company’s long-term potential. Moreover, with an intrinsic value of ₹201, the stock seems undervalued at current levels.
Final Thoughts
The entry of foreign institutional investors (FIIs) into Balaxi Pharma could signal optimism for future growth. While revenue performance has been strong, profitability challenges remain a concern. Investors should closely monitor the company’s financial performance, operational efficiency, and market developments before making investment decisions.
With strong trading volumes, increasing FII interest, and a strategic global presence, Balaxi Pharmaceuticals remains a stock to watch in the pharmaceutical sector.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.