Hikal's Strong Financial Metrics Highlight Resilience in Pharmaceutical Sector Performance

Hikal, a midcap player in the Pharmaceuticals & Drugs sector, has recently undergone a significant evaluation revision, reflecting its robust financial performance for the quarter ending March 2025. The company reported impressive metrics, including a record operating profit to interest ratio of 6.89 times and net sales reaching Rs 552.40 crore. Additionally, Hikal achieved its highest PBDIT at Rs 123.40 crore and a notable operating profit margin of 22.34% relative to net sales.
The company's profit before tax, excluding other income, stood at Rs 67.80 crore, while the profit after tax was reported at Rs 50.20 crore, translating to an earnings per share of Rs 4.06. These figures indicate a strong operational efficiency and effective cost management.

In terms of market performance, Hikal has outperformed the Sensex over various time frames. Over the past year, Hikal's stock return was 46.84%, significantly higher than the Sensex's 11.25%. Furthermore, the company has shown remarkable growth over the last five years, with a stock return of 284.66% compared to the Sensex's 161.32%. This performance underscores Hikal's resilience and strategic positioning within the competitive pharmaceutical landscape.