Lincoln Pharmaceuticals Ltd. Hits All-Time High; Share Price Gains 15% in a Week
Ahmedabad, Gujarat, [India] – May 20: Lincoln Pharmaceuticals Ltd., a leading pharmaceutical company based in Ahmedabad, has achieved a significant milestone with its share price reaching an all-time high. The company’s stock price surged by over 15% in just one week, touching Rs. 451 per share on May 18, 2023, with high trading volumes. The share price closed at Rs. 440 on May 19, 2023, on the Bombay Stock Exchange (BSE), with a market capitalization of approximately Rs. 880 crore.
Over the past three years, the company’s stock price has more than doubled, increasing from around Rs. 150 per share to the current level of Rs. 440—an impressive gain of over 200%. In the last month alone, the share price has risen by more than 15%, from Rs. 383 per share on May 15, 2023.
Strong Financial Performance and Growth Prospects
Over the last five years, Lincoln Pharmaceuticals has demonstrated a robust 20% CAGR (Compound Annual Growth Rate) in profits, accompanied by steady single-digit growth in sales. The company has significantly improved its operational and financial performance, managing to double its profit margins from approximately 9% in FY18 to over 14.5% in FY22. With strategic initiatives focusing on product expansion, geographical diversification, and enhanced operational efficiency, the company is well-positioned for continued growth.
The company maintains a solid liquidity position, backed by healthy cash accruals, no-term debt, and strong return ratios. These improvements in the financial risk profile, coupled with steady growth in scale and margins, have earned the company an upgrade in its credit ratings. ICRA has raised its long-term and short-term bank facilities ratings to A and A1, respectively.
Increasing Stakeholder Confidence
Promoter groups and institutional investors have been gradually increasing their stakes in Lincoln Pharmaceuticals. As of March 2023, the promoter group’s holding in the company has grown to 47%, up from 32.36% in March 2020. Foreign institutional investors also increased their stake to 1.27% as of March 2023, reflecting growing confidence in the company’s future prospects.
Strategic Expansion and Acquisitions
In September 2021, Lincoln Pharmaceuticals acquired a plant in Mehsana, Gujarat, for the production of Cephalosporin products. The company invested Rs. 30 crores in the plant, including the acquisition and subsequent capacity expansion funded through internal sources. The new plant is expected to contribute around Rs. 150 crore in sales over the next three years.
The company continues to show impressive growth in both domestic and export operations, with plans to expand its footprint in the European Union markets. Currently, Lincoln Pharmaceuticals exports to over 60 countries and is well-positioned for continued global expansion.
Financial Highlights
For the third quarter of FY23, Lincoln Pharmaceuticals reported a net profit of Rs. 21.61 crore, reflecting a 22.8% year-over-year growth. Total income for Q3FY23 grew by 14.4% to reach Rs. 140 crore. For the nine months of FY23, the company reported a net profit of Rs. 60.34 crore on total income of Rs. 416.4 crore.
Rajneesh Singh is a journalist at Asian News, specializing in entertainment, culture, international affairs, and financial technology. With a keen eye for the latest trends and developments, he delivers fresh, insightful perspectives to his audience. Rajneesh’s passion for storytelling and thorough reporting has established him as a trusted voice in the industry.
