Penny inventory hits 5% higher circuit after securing ₹517 Cr Pharma Sourcing Cope with Thai Agency

Throughout Wednesday’s buying and selling session, shares of this firm engaged within the manufacturing of pharmaceutical merchandise hit a 5 p.c higher circuit, following the corporate’s announcement of securing Rs. 517 Crore World Sourcing Mandate.

With a market cap of Rs. 154.6 crores, the shares of Welcure Medication & Prescribed drugs Restricted hit a 5 p.c higher circuit at Rs. 13.74 on BSE, as towards its earlier closing worth of Rs. 13.09. The inventory has delivered multibagger returns of round 149 p.c in a single yr, and has gained by over 23 p.c within the final one month.

What’s the Information

Welcure Medication & Prescribed drugs Restricted has executed a definitive mandate with Fortune Sagar Impex Firm Restricted, a shopper based mostly in Thailand, to deal with the sourcing and procurement of pharmaceutical merchandise on their behalf. The entire worth of this engagement is almost Rs. 517 crore, in response to regulatory filings with the BSE.

Below this settlement, Welcure will act as a fee-based procurement associate, serving to the abroad shopper supply a number of finished-dosage SKUs (Ex-Works mannequin). Ex-Works mannequin, which means Welcure’s position is proscribed to sourcing and arranging items from producers  the customer handles the remainder.

In return, Welcure will earn a hard and fast 5 p.c fee on the price of the products, translating into an estimated service income of round Rs. 25.85 crore, which is anticipated to be recorded throughout FY26.

Your complete mission will likely be carried out on a call-off foundation, and the primary batch is anticipated to maneuver instantly, as soon as the shopper completes preliminary pre-funding as per the phrases of the settlement. The remaining tranches are scheduled to be wrapped up by thirtieth September 2026.

The accountability for packaging, labelling, delivery containers, insurance coverage, freight, and securing regulatory clearances within the vacation spot nation lies completely with the customer.

This deal provides to Welcure’s fee-based revenue portfolio and permits the corporate to develop with out taking over any monetary danger or publicity on its steadiness sheet. The corporate will present additional updates as and when new batches are activated.

Financials & Extra

Welcure Medication reported a big development within the income from operations, experiencing an increase of almost 2309 p.c QoQ, rising from Rs. 0.88 crores in Q3 FY25 to Rs. 21.2 crores in This fall FY25. Equally, throughout the identical interval, the corporate’s web revenue elevated from Rs. 0.04 crores to Rs. 2.54 crores, representing an increase of round 6250 p.c QoQ.

Welcure Medication & Prescribed drugs Restricted consists of merchandise like bulk medication, drug intermediates, and pharmaceutical formulations. It manufactures over 100 styles of tablets, capsules, and dry syrups, sulpha medication, nutritional vitamins, analgesics, and many others.

Written by Shivani Singh

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