Forget Bitcoin! Orchid pharma stock rallied 6,000% in just 4 months

sadbhawnapaati
3 Min Read

This pharma stock has rallied 6,488 percent in just 4 months as compared to a 26.63 percent gain in Sensex and a 203 percent rise in Bitcoin price during the same period.
The stock of a pharma company has defied gravity and has delivered unmatched returns of over 6,000 percent in just four months. The stock of Orchid Pharma has outperformed not only equities and commodities like gold, but also the most popular cryptocurrency, Bitcoin. Share of Orchid Pharma has rallied 6,488 percent in just 4 months from Rs 18 on November 3, 2020, to a record high of Rs 1,186 as of March 8, 2021. In contrast, the BSE benchmark SENSEX has gained 26.63 percent during the same period, while the Bitcoin price surged 203 percent. The return delivered by Orchid Pharma shares outperformed the combined gains of Sensex (27 percent) and Bitcoin (203 percent) by a factor of 28.
On Monday, Orchid Pharma’s share price opened at a 52-week high of Rs 1,186 against the previous closing price of Rs 1,129.55. The stock was locked in the upper circuit of 5 percent today. It is worth noting that the stock has hit an upper circuit every day since it got relisted on the stock exchange on November 3, after Dhanuka Labs acquired Orchid Pharma under an NCLT resolution. The market cap of the Chennai-based pharmaceutical company surged to Rs 4,840.83 crore. On the volume front, there was a surge in buying as 3,494 shares changed hand over the counter as compared to the two-week average volume of 1,788 shares.

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For the quarter ended December 31, 2020, the pharma company reported a net loss at Rs 45.33 crore as compared to a loss of Rs 34.75 crore in December 2019. Net sales were down 20.18 percent to Rs 102.63 crore, from Rs. 128.58 crore in December 2019. On the operating front, EBITDA was negative at Rs 3.81 crore as against Rs 2.02 crore in December 2019.
As per the latest shareholding pattern, Dhanuka Labs holds a 99.96 percent stake in Orchid Pharma and financial institutions hold a 0.04 percent stake.

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