Bajaj Healthcare (BHL) rose over 7% to hit an intraday high today at Rs.365, with volumes jumping up over 2x. Its 52-week high stands at Rs.499.

The company announced today morning that it has become the first company to enter into the highly regulated opiate processing business. It has won two contracts for opiate processing from Government of India. The derivate API’s and extracts are normally used in a wide range of pharmaceutical applications.

The company’s foray into new line of business will open up a new stream of revenue which showsimmense growth potential, as BHL is currently the sole player for government allocated Opiate processing on a long term basis.

The company plans to execute both these tenders at their API manufacturing unit located at Savli, Gujarat; expected to bring an overall margin accretion to the company mainly on account of better capacity utilization of the existing plant.