Sudarshan Pharma Industries Ltd (SPIL), a prominent contract manufacturer of generic pharmaceuticals, has announced a 10:1 stock split, with the record date set for November 18, 2024. This decision will split each existing equity share with a face value of ₹10 into ten shares with a ₹1 face value each. The goal behind this move is to enhance liquidity and attract a larger pool of retail investors, making the stock more accessible.
Following the announcement, SPIL’s stock price increased by 3.11%, rising from ₹402.5 to ₹415 per share. The stock has shown remarkable growth over the past year, climbing over 500% from a 52-week low of ₹58.20 to a high of ₹452.70. With a current market capitalization of ₹100 crore, SPIL has been growing at an impressive 37% compound annual growth rate (CAGR) in profits over the last five years.
In addition to the stock split, SPIL recently acquired a 51% stake in Ishwari Healthcare Private Limited, making it a subsidiary of SPIL. This acquisition, which involves medical and surgical instrument manufacturing as well as healthcare products, expands SPIL’s business into new areas of the healthcare industry, further diversifying its operations.
Although SPIL is experiencing a bullish run, technical analysts point out that the stock faces strong resistance at ₹427. If the stock drops below ₹380, it could potentially target ₹326 in the near term.
The stock split is part of SPIL’s broader strategy to increase shareholder value by improving the affordability of its shares and attracting a more diverse investor base while continuing to focus on providing high-quality healthcare and pharmaceutical solutions.
Disclaimer: This is not financial advice. The information provided is for informational purposes only. Please conduct your research or consult with a professional financial advisor before making any investment decisions.
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