Shares of Indco Remedies surged 7% in intraday trade on Thursday to hit an eight-month high of Rs 414.85 with hopes of higher profit margins.

Shares of the pharmaceutical company are at their highest level since March 2022. It has gained 17% over the past week, compared with a 0.35% gain for the S&P BSE Sensex. The stock hit a 52-week high of Rs 459 on January 3, 2022.

Indoco manufactures and markets branded formulations and APIs for domestic and export markets. The company provides specialised services through its nine domestic formulation marketing divisions.

Domestic preparations accounted for 54% of revenue. Primary therapies include respiratory, anti-infective, oral, gastrointestinal and vitamins. Formulation exports accounted for 41% of revenue, while API contributed 4%, with the remaining contribution from CRAMS.

In the July-September quarter (Q2FY23), Indoco Remedies’ revenue rose 12% year-on-year to Rs 433 crore. EBITDA also rose 1.7% year-on-year to Rs 88 crore, with a margin of 20.3%. Meanwhile, profit after tax rose 19% year-on-year to Rs 49.7 crore.

“We delivered strong results, driven by international formula sales and supported by a strong domestic business, which helped us achieve higher margins in the quarter,” management said.

ICICI Securities analysts maintained their “Buy” rating on the stock, citing stable domestic business visibility, strong export guidance and improving margins.