Welcure Drugs Surges Nearly 5% After Securing ₹85.6 Cr Export Orders
By Shishta Dutta | Published at: Jun 30, 2025 03:48 PM IST
New Delhi, June 30 – The shares of Welcure Drugs & Pharmaceuticals Ltd (BSE: 524661) surged 4.94% to ₹13.60 on the BSE as of 02:00 PM IST today. This was after the company announced the receipt of export orders (₹85.6 crore in total) from Giant Exim and Ravina International.
With this announcement, the company’s margins are expected to improve, and overall operational risk is expected to decrease. These orders are part of a larger ₹517 crore sourcing mandate on a fee-based model (5% commission).
Trading at ₹13.60 per share, the stock has generated a monthly return of approximately 20.67%.
Key Developments
Welcure confirmed the execution of two export sourcing contracts with international buyers Giant Exim and Ravina International. Both deals are for the procurement and consolidation of mycorrhizal inoculants (bulk bags) on an EXW basis, each valued at approximately ₹42.8 crore. The contracts are structured as fee-based assignments with no inventory or logistics exposure, ensuring margin accretion from commission-based revenue recognition per shipment dispatch.
| Counter-party | Nature of Assignment | Indicative Value |
|---|---|---|
| Giant Exim | Procurement & consolidation of mycorrhizal inoculant (EXW) | ₹42.8 crore |
| Ravina International | Same product & commercial terms as above | ₹42.8 crore |
The company also disclosed it’s in advanced negotiations for additional export deals worth over ₹20 crore, expected to conclude within the ongoing quarter.
Stock Snapshot (As of 12:09 PM, June 30)
| Metric | Value |
|---|---|
| Previous Close | ₹12.96 |
| Last Traded Price | ₹13.60 (+4.94%) |
| 52-Week High | ₹15.89 |
| 52-Week Low | ₹4.98 |
| VWAP | ₹13.25 |
| PE Ratio | 34.00 |
| PB Ratio | 1.50 |
| EPS (TTM) | ₹0.40 |
| ROE | 4.37% |
| Market Cap (Full) | ₹153.02 crore |
| Turnover (Day) | ₹1.74 crore |
| TTM Quantity Traded | 13.15 lakh |
| Free-Float Market Cap | ₹18.19 crore |
The scrip has remained in Stage 1 of the Enhanced Surveillance Measure (ESM) framework, and its PE remains above 50 for the trailing four quarters, indicating sustained investor optimism despite valuation pressures.
Strategic Commentary
According to the disclosure, these transactions are part of the company’s long-term strategy to build a fee-based export revenue model without debt exposure. Management emphasised that these assignments are in the ordinary course of business and not related-party transactions under SEBI LODR norms.
“The company remains focused on expanding its fee-based export portfolio while maintaining its debt-free capital structure,” said Director Chintan Didawala Ganpat in the filing.
About the Company
Welcure Drugs & Pharmaceuticals Ltd is a listed entity in the pharmaceutical industry, currently categorised under Group XT on the BSE with a T+1 settlement cycle. The company specialises in bulk drug manufacturing and operates with a lean capital structure focused on external market linkages for growth.
REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/51492e12-bed8-4c8d-819a-7942483cc446.pdf
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