• Sun. Aug 7th, 2022

Tarsons Products hits 8-month high with strong volume; climbed 20% in one week

ByElla E. Kidwell

Jul 7, 2022


Shares of Tarsons Products (TPL) hit an eight-month high at Rs 865.95 as the stock rose 7% on BSE in Thursday’s trade. The stock has jumped 11% in the past two days on strong volumes.

The stock of medical equipment and suppliers was trading at its highest level since November 2021. It had debuted in the market on November 26, 2021 and reached a record high of 928.65 rupees on November 29. issue price of Rs 662 per share.

Over the past two weeks, the TPL has jumped 20%, against a 2% increase in the S&P BSE Sensex. It has climbed 32% over the past six months, compared to a 9% decline in the benchmark.

At 1:59 p.m.; the stock traded up 6% to Rs 857 on the back of a nearly six-fold increase in trading volumes. A total of 797,000 shares representing 1.5% of the company’s total capital changed hands on the NSE and BSE.

TPL is an Indian laboratory equipment company engaged in the design, development, manufacture and marketing of ‘consumables’, ‘reusable’ and ‘others’, including benchtop equipment, which are used in various laboratories in research organizations, academic institutes, pharmaceutical companies and contract research organizations. (CRO), diagnostic companies and hospitals.

In the financial year 2021-22 (FY22), TPL posted a robust operational performance, with revenue from operations increasing by 31.4% year-on-year (YoY) to reach Rs 301 crore. Earnings before interest, tax, depreciation and amortization (EBITDA) margin improved to 50.77% from 45.19% in FY21, while after-tax profit jumped 46% year-on-year annual to reach Rs 101 crore.

The pharmaceutical and health services industry has experienced excellent growth in terms of market demand over the past few years. This has been driven by the higher incidence of chronic diseases, improved health infrastructure and greater insurance penetration. Additionally, increasing investment in R&D and expanding diagnostic centers in India are increasing the need for laboratory equipment.

According to a report by Frost & Sullivan, the Indian laboratory equipment market is expected to grow at a CAGR of 7.8% during 2020-2025 and reach Rs 3,421 crore (USD 469.9 million). “Factors driving this growth include concerns over healthcare issues, increasing healthcare penetration, improving diagnostic facilities, growth in outsourcing of pharmaceutical R&D to the ‘India and the growing emphasis on research and development,’ TPL said in the FY22 annual report.

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