The coronavirus pandemic improved the outlook of pharma sector stocks. Investors saw opportunities in pharma companies and it has been encouraging since then. One pharma stock that has delivered a whopping return of nearly 7,000 per cent return is Orchid Chemicals & Pharmaceuticals Limited.
According to exchange data, Orchid Pharma share has rallied 6,900 per cent in just four months. The share was trading at Rs 18 on November 3 last year. It touched lifetime high of Rs 1,245.30 on March 9 (Tuesday), translating a return of 6,900 per cent. The stock was locked in upper circuit of 5 per cent today.
The company's stock outperformed Bitcoin that has emerged as a popular investment destination in the past few years. It also outperformed commodities like gold. In terms of return, the popular cryptocurrency surged a little over 200 per cent during the same period.
Orchid Chemicals & Pharmaceuticals Limited is a pharmaceutical company based in Chennai. It was founded in 1992 by Kailasam Raghavendra Rao, an alumnus of IIM Ahmedabad. It went public and issued shares in 1993. Orchid Pharma became the youngest Indian pharmaceutical company to receive the ISO 9002 Certification in 1997.
Interestingly, the firm was among the 28 large corporate defaulters in the Reserve Bank of India's second list of debt-laden companies that were referred for insolvency in August 2017. The firm owed a total of Rs 3,200 crore to a consortium of 24 banks.
Under an NCLT resolution, Dhanuka Labs acquired Orchid Pharma and the firm was relisted on the stock exchange on November 3 last year. Dhanuka now holds 98.04 per cent stake in the company. It is worth mentioning that the share of Orchid Pharma has hit an upper circuit every day since it was relisted.