Emcure Pharma shares hit 10 per cent upper circuit on Q2 results
The pharmaceutical company raised its FY27 revenue growth guidance following a 29.3 per cent increase in adjusted profit after tax.
Shares of pharmaceutical major Emcure Pharma hit a 10 per cent upper circuit and a 52-week high of Rs 2,180.80 on the BSE on Wednesday, according to The Economic Times. The surge followed the company's second quarter FY27 results, which showed an adjusted profit after tax (PAT) of Rs 325.1 crore, up from Rs 251.4 crore in the same quarter last year.
The company reported a 24.3 per cent year-on-year increase in revenue from operations to Rs 2,820.5 crore for the quarter. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 30.9 per cent year-on-year to Rs 574.8 crore, while the EBITDA margin improved to 20.4 per cent from 19.3 per cent in Q2FY26.
Management raised its FY27 revenue growth guidance to over 20 per cent from an earlier mid-teens forecast. The company also expects an EBITDA margin improvement of about 100 basis points from its previous guidance.
Jefferies raised its target price for the company to Rs 2,500 from Rs 2,320, forecasting a 33 per cent upside. The brokerage noted that the company delivered a 7-10 per cent beat on revenue, EBITDA, and PAT estimates due to stronger growth in international markets.
HDFC Securities assigned a target price of Rs 2,208 in its Diwali picks, noting that the domestic formulation segment is growing strongly. Emcure expects growth momentum in international markets to continue, driven by Amphotericin B and other new product launches.