Medi Caps skids despite forming a JV

Medi Caps skids despite forming a JV

Medi Caps declined 0.50% to Rs 69.50 on BSE at 12:46 IST even as the firm entered into a joint venture agreement with Mission Pharmaceuticals for setting up a plant at special economic zone in Madhya Pradesh.

The company made this announcement after trading hours on Friday, 22 February 2008.

Meanwhile, BSE Sensex was down 37.79 points or 0.22% to 17,311.28.

On BSE, 841 shares were traded in the counter. The scrip had an average daily volume of 11,643 shares in the past one quarter.

The stock hit a high of Rs 70 and low of Rs 68 so far during the day. The stock had a 52-week high of Rs 109 on 4 January 2008 and a 52-week low of Rs 53 on 12 March 2007.

The small-cap scrip had outperformed the market over the past one month till 22 February 2008, gaining 8.46% compared to the Sensex’s return of 0.74%. It had underperformed the market in the past one quarter, declining 8.51% compared to Sensex’s decline of 7.98%.

The company’s current equity is Rs 3.39 crore. Face value per share is Rs 10.

The current price of Rs 69.50 discounts its Q2 September 2007 annualized EPS of Rs 26.15, by a PE multiple of 2.66.

The company plans to manufacture softgel capsules in the proposed facility. The total investment would be around Rs 20 crore, out of which the company has already contributed total Rs 55 lakh in the current financial year.

Medi Caps’ net profit rose 129.2% to Rs 2.04 crore on 14% fall on net sales to Rs 4.18 crore in Q2 September 2007 over Q2 September 2006.

Medi Caps is engaged in manufacturing pharmaceuticals products. Its product includes hard gelatin capsule shells.