Foreign institutional investors are increasing their holdings in Viyash Scientific amid signs of a strategic shift towards a broader pharmaceutical platform, fuelled by robust earnings growth and a focus on animal and human health segments.
Foreign institutional investors have been building their position in Viyash Scientific, the animal health and pharmaceutical group formerly known to many investors as SeQuent Scientific, as the company’s latest quarter pointed to a sharper earnings mix and faster margin expansion.
According to the Trade Brains report, FIIs lifted their holding from 2.94% at the end of March to 4.50% in the June quarter, a jump that suggests growing interest in the company’s turnaround story. The stock closed at about Rs252.15 on Monday, giving Viyash a market value of roughly Rs10,987 crore.
The bigger shift is operational. Viyash is trying to present itself not just as an API maker, but as a broader pharmaceutical platform with human health, animal health and contract development capabilities. Its portfolio now spans more than 90 APIs, over 30 human health products and more than 140 animal health products, supported by a large R&D base and registrations in more than 150 countries, the company says on its investor material.
That repositioning showed up in the June quarter numbers. Formulations revenue rose 33% year on year to Rs555 crore, while API revenue increased just 4% to Rs383 crore. The faster-growing formulations business also broadened its reach, with sales up 63% in India, 60% in the US, 36% in emerging markets and 13% in Europe, according to the company’s earnings disclosure and related analysis by Arthneeti.
Profitability improved even more quickly than sales. Revenue rose 19.5% to Rs946 crore, while adjusted EBITDA climbed 59.2% to Rs205 crore, pushing the EBITDA margin up to 21.6% from 16.2% a year earlier. Viyash also reported stronger bottom-line growth as finance costs eased and debt declined.
The balance-sheet trend is another reason investors are paying attention. Net debt fell to Rs86.1 crore from Rs166.1 crore, and net debt to trailing EBITDA improved to 0.1 times. That gives the company more room to fund acquisitions and capacity upgrades, including work tied to its Bio For Life deal in Italy, although that transaction has yet to contribute to the quarter’s results.
Still, the market appears to be giving Viyash credit for a good deal of future execution. Arthneeti says the company is targeting double-digit growth in APIs, further gains in animal health and expansion in its CDMO business, but the stock already reflects much of the margin improvement. Analysts quoted by StockAnalysis currently describe the shares as a strong buy, with a 12-month target above the current price, though such forecasts can change quickly if integration, product launches or cost control disappoint.
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