Sakar Healthcare Shares Jump 4% on Partnership with Intas Pharma for Cancer Drug Supply in EU & UK
Stock Surges After Strategic Agreement
Sakar Healthcare Shares : Shares of Sakar Healthcare Limited surged by nearly 4.3% on the NSE during Monday’s trading session after the company announced a significant partnership with Intas Pharmaceuticals’ subsidiary, ACCORD Healthcare Limited. This collaboration will see Sakar Healthcare manufacturing and supplying oncology (cancer treatment) products for the UK, EU, and emerging markets.
At 1:43 p.m., Sakar Healthcare’s stock was trading at ₹238, up 0.7% from its previous close of ₹236.35. The company has a market capitalization of ₹522.4 crore. Despite this recent jump, the stock has faced pressure over the past year, delivering negative returns of nearly 38% and a 21% decline over the last month.
Strategic Collaboration to Boost Market Presence
As per regulatory filings, Sakar Healthcare will manufacture and supply oncology products, including injections and oral solid formulations, to ACCORD Healthcare Limited, a leading name in the European oncology market. The collaboration is expected to strengthen Sakar’s footprint in the EU and UK markets while also allowing the company to register some of its products under its own brand.
The technology transfer process has already commenced for seven oncology drugs—five oral solids and two injectable formulations—which will be manufactured at Sakar’s EU GMP-approved facility specializing in oncology dosage formulations.
ACCORD Healthcare, a wholly-owned subsidiary of Intas Pharmaceuticals, operates in over 45 countries and is ranked among the top three oncology product suppliers in most EU markets. It specializes in providing generic anti-cancer drugs to hospitals and retail pharmacies across Europe and beyond.
Strong Financial Performance
Sakar Healthcare’s financial performance has been on an upward trajectory, with notable growth in revenue and profitability.
| Metric | Q3 FY24 | Q3 FY25 | YoY Growth |
|---|---|---|---|
| Revenue | ₹37.23 Cr. | ₹43.4 Cr. | +16.6% |
| Net Profit | ₹2.07 Cr. | ₹4.5 Cr. | +117.4% |
This remarkable 117.4% jump in net profit signals the company’s increasing efficiency and profitability, likely driven by its expanding global partnerships and product portfolio.
Financial Ratios & Market Performance
The following table presents key financial ratios and stock performance indicators for Sakar Healthcare:
| Metric | Value |
|---|---|
| Market Cap | ₹542 Cr. |
| Current Price | ₹247 |
| 52-Week High/Low | ₹418 / 213 |
| Stock P/E | 36.4 |
| Book Value | ₹123 |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | 7.31% |
| ROE (Return on Equity) | 5.28% |
| Face Value | ₹10.0 |
| Promoter Holding | 53.6% |
| Debt to Equity Ratio | 0.28 |
| Price to Earnings Ratio | 36.4 |
| Pledged Percentage | 0.00% |
| Quarter-on-Quarter Profit Change | -5.63% |
| Quarterly Profit Variation | 121% |
| Industry PE Ratio | 29.7 |
| Graham Number | ₹137 |
| Intrinsic Value | ₹165 |
| Relative Strength Index (RSI) | 42.0 |
| Earnings Per Share (EPS) | ₹6.81 |
| No. of Equity Shares | 2.19 Cr. |
| PEG Ratio | 3.22 |
| 200-Day Moving Average (DMA) | ₹307 |
| Free Cash Flow (3 Years) | ₹-146 Cr. |
| Free Cash Flow (Latest Year) | ₹-35.1 Cr. |
| Total Debt | ₹74.2 Cr. |
About Sakar Healthcare
Established in 2004, Sakar Healthcare Limited is engaged in contract manufacturing of pharmaceutical formulations, catering to both domestic and international markets. The company specializes in:
- Liquid Orals
- Cephalosporin Tablets & Capsules
- Dry Powder Syrups & Injections
- Liquid Injectables (SVP) in Ampoules & Vials
- Lyophilized Injections
- Oral Solid Dosages
Sakar Healthcare has been consistently expanding its manufacturing capabilities and is now making a strong push into the oncology segment, which presents a high-growth opportunity in global markets.
What This Means for Investors
This collaboration with Intas Pharma’s ACCORD Healthcare is a major milestone for Sakar Healthcare, reinforcing its position in the oncology space and strengthening its international footprint. The company’s EU GMP-certified facility and research-driven approach give it a competitive edge in the European and UK oncology markets.
However, investors should also consider the stock’s recent downtrend and negative free cash flow while making decisions. The debt-to-equity ratio of 0.28 is manageable, but the high P/E ratio (36.4) suggests that the stock may be overvalued compared to industry peers.
With oncology being a high-margin business, this strategic partnership could be a turning point for Sakar Healthcare, driving long-term revenue growth and profitability. Investors should keep an eye on the company’s future earnings reports and execution of this deal to assess its true potential.
Final Thoughts
Sakar Healthcare’s 4% stock surge following its partnership with Intas Pharma’s subsidiary ACCORD Healthcare reflects investor optimism over its expansion in the European oncology market. With the technology transfer already in progress, the company is poised to enhance its product portfolio and global market share.
As the oncology sector continues to grow, this collaboration could position Sakar Healthcare as a key player in the international pharmaceutical industry, making it an interesting stock to watch in the coming quarter
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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.