• Source:JND
Add as a preferred

Following the release of Balaxi Pharmaceuticals' financial results for the fourth quarter and full year of FY25, as well as its strategic global expansion roadmap, the company's shares jumped more than 10% on Monday, June 9. The stock, which is currently trading below Rs 100, surged as much as 10.7 percent during intraday trading to reach Rs 57.5 on the NSE.

Balaxi's strategy to increase its footprint in current markets and enter new areas propelled the rally. Building on its successful entry into frontier markets like Honduras, El Salvador, Nicaragua, and the Central African Republic, the company announced that it will be expanding into a number of Latin American nations, Southeast Asia, and the CIS between 2021 and 2024. Balaxi will adhere to its asset-light model, emphasizing scalable operations, backward integration, and differentiation.

Also Read: Bank of Baroda, HDFC Bank Reduce Lending Rates Post RBI Cuts Repo Rate; Details

Stock Performance

Although investors were encouraged by the June 9 uptrend, Balaxi's stock has experienced high volatility in the last 12 months. On an annual basis, it is still more than 54% lower. With the stock up 14% so far in June, the recent trend, however, points to a recovery. This comes after a drop of 13.7 percent in April and 9.4 percent in May. Notably, Balaxi ended a seven-month losing streak in March with a 20 per cent jump.

Q4 Results

FY25 was a year of financial turnaround for the business. Balaxi reported a net profit of Rs 25 crore, reversing a loss of Rs 2.39 crore in FY24. Revenue for the year increased by 21% to Rs 292.5 crore. Rising expenses, however, had an effect on profitability; EBITDA dropped 24% to Rs 33.5 crore, and margins shrank to 11.5% from 18.3% the year before.

Also Read: Stock Market today: Sensex, Nifty Surge In Early Trade Tracking Rally In Global Peers, RBI's Rate Cut

While revenue increased 27.5 per cent to Rs 76.3 crore in Q4 FY25, Balaxi's net profit fell 21 per cent year over year to Rs 8.64 crore. Additionally, EBITDA decreased 7% to Rs 10.86 crore, while margins shrank from 19.5% to 14.2%.

Disclaimer: This is just a piece of news about recent developments in the stock. Jagran does not advise investing. Please take the expert's advice before investing.