Synopsis: Medico Remedies gained 6% after securing a Rs. 73.23 crore government drug supply order from UPMSCL, boosting share price and strengthening revenue visibility and growth prospects.
This is a formulation manufacturing company with a focus on anti-infective, BetaLactums, cephalosporin, antimalarial, antiretroviral, anti-ulcer drugs, antacids, vitamins, haematinics and other supplements is now in the spotlight after receiving an order from Uttar Pradesh Medical Supplies Corporation Limited.
With a market capitalisation of Rs. 408 cr, the shares of Rs. Medico Remedies Ltd are currently trading at Rs. 49.17 per share, increasing 6% in today’s market session, making a high of Rs. 50.07, up from its previous close of Rs. 47.18 per share.
About the order
Medico Remedies Limited has received a major boost with the award of a large government supply order from Uttar Pradesh Medical Supplies Corporation Limited (UPMSCL). UPMSCL is an entity formed by the Government of Uttar Pradesh, is responsible for the centralised procurement and distribution of medicines and healthcare supplies across the state, playing a key role in strengthening public healthcare delivery.
Under this contract, Medico Remedies has secured an order worth approximately Rs. 73.23 crore for the supply of Azithromycin 500 mg tablets. The order is domestic in nature and will be executed as per the agreed contractual terms. The company is expected to complete the entire supply by October 31, 2026, providing revenue visibility over the coming quarters and reinforcing its position in the government healthcare procurement segment.
The order is significant as it reflects Medico Remedies’ strong manufacturing capabilities and credibility in supplying essential medicines at scale. This development is likely to support the company’s growth outlook while strengthening its presence in the public healthcare supply chain.
About the company
Medico Remedies Limited is a pharmaceutical formulation manufacturing company with strong manufacturing and marketing capabilities across a wide range of therapeutic segments. The company primarily focuses on anti-infectives, beta-lactams, cephalosporins, antimalarials, antiretrovirals, anti-ulcer drugs, antacids, vitamins, haematinics, and supplements.
The company has strong financial metrics with ROCE of 21.3% and ROE of 17.6%, supported by a low debt-to-equity ratio of 0.19. It has delivered robust profit growth of 44.0% CAGR over the last five years.
Sales of the company increased from Rs. 38.25 cr in Q1FY26 to Rs. 52.64 cr in Q2FY26. Operating profit fell to Rs. 2.73 cr from Rs. 2.82 cr. Profit before tax also increased from Rs. 2.43 cr to Rs. 3.48 cr. Net profit rose from Rs. 1.82 cr to Rs. 2.57 cr over the same period.
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