Here's why this smallcap pharma stock sprint 9%, hit 52-week high on September 5

With today's surge, the stock has skyrocketed over 37 percent

Smallcap pharma stock Kopran leapt 9 percent to touch a 52-week high of Rs 342 apiece on September 5 after credit rating agency CRISIL Ratings reaffirmed its long-term bank facilities with a 'stable' outlook. With today's surge, the stock has skyrocketed over 37 percent, beating benchmark Nifty 50's 16 percent rise.

Kopran is an integrated pharma company manufacturing a large range of products. It manufactures both active pharma ingredients, and finished dosage forms, and is focused on improvement in technology and new products duly integrated through its research and development team.

The company operates in two distinct business verticals. While pharmaceutical formulation production is managed by Kopran, the manufacturing of API is operated under Kopran Research Laboratories. More than 549 product approvals have been secured by the company in 46 countries, including 10 registrations/product approvals.

In the recently concluded June quarter, Kopran's net profit zoomed over four-fold YoY to Rs 11.1 crore from Rs 2.77 crore. Its net sales also surged by 19.1 percent YoY to Rs 139 crore in Q1FY25.

Looking ahead, the company remains to initiate new formulation products for the regulated market. The development of new products aims to integrate new molecules that are also manufactured and developed in the API business of the company.

"The outlook for the growth of the API of Kopran remains positive. The Company’s API plant at Panoli is anticipated to strategically benefit Kopran in its sustainable growth and is expected to commence production at the End of Q3 FY 2025. Also, it has received Environmental Clearance from the Government of India for the manufacturing of APIs and intermediaries," the company stated in its annual report.

However, it highlighted domestic and international economic conditions, as well as changes in government policies, tax laws, and other regulations that could also impact the company's performance.