Suven Pharmaceuticals shares jump over 6% after cabinet approves Rs 9,589 crore FDI
Suven Pharmaceuticals jumped 6.6% to Rs 551 in Thursday's trade on BSE after the Union Cabinet on Wednesday approved a Rs 9,589 crore foreign direct investment (FDI) proposal by a Cyprus-based firm in the company.
As per the proposed deal, Cyprus-based Berhyanda will acquire 76.1% equity shares of Hyderabad-headquartered Suven Pharmaceuticals. With the new deal, the aggregate foreign investment in Suven Pharmaceuticals will increase to 90.1%.
An official statement released after the Cabinet Committee on Economic Affairs (CCEA) meeting also mentioned that this approval was granted following a thorough evaluation of the proposal by relevant departments, the Reserve Bank of India (RBI), and the Securities and Exchange Board of India (SEBI).
At 10.55 am, the stock was trading 1.4% higher on BSE.
On a year-to-date basis, the stock has risen 7%, while it has surged 11% in the past six months.
In Q1 FY24, Suven Pharma reported a 12% YoY growth in its net profit to Rs 120 crore. Net profit was Rs 107 crore in the year-ago period.
Its sales during the first quarter rose 3% to Rs 347 crore, as against Rs 338 crore in the same quarter of last year.
According to the latest shareholding pattern available with the exchanges, as of 30 June 2023, 60% of the company's shareholding is with the promoter & promoter group, and 40% with the public.
As per Trendlyne data, the average target price of the stock is Rs 605, which shows an upside potential of 15% from the current market prices. The consensus recommendation from one analyst for the stock is a 'Strong Buy'.
Technically, the stock's day RSI (14) is at 58.3.
The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. MACD is at 4.8, which is above its
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