Shares of Sigachi Industries, a small-cap pharmaceutical company, have experienced a notable surge, jumping 37% in just two trading sessions. This rally has sparked interest among investors and market analysts, prompting speculation about the factors driving this upward trend. Several potential catalysts have been identified, including positive developments surrounding the India-US trade deal and the anticipation of the company's dividend record date.

On Friday, September 12, 2025, Sigachi Industries' stock price rose over 14% during intra-day trading, building on the nearly 20% gain from the previous session. This surge coincides with optimism fueled by recent discussions and statements regarding the India-US trade deal. Market observers suggest that the rally may be attributed to positive sentiments arising from these developments. However, it's important to note that the rally is largely speculative, as concrete details from the recent meetings between Indian and US officials have yet to emerge.

Another factor contributing to the stock's upward movement is the upcoming dividend record date. Sigachi Industries has announced a 10% dividend (₹0.10 per equity share) for the financial year 2024-25, with September 16, 2025, set as the record date. This announcement has likely attracted investors seeking dividend payouts, further driving up demand for the stock. The total dividend payout is expected to be ₹3.82 crore.

Despite the recent surge, Sigachi Industries' stock has faced challenges over the past year. The stock remains down over 32% in the past year and has shed 26% over the last three months. However, September has marked a turnaround, with the stock gaining 37% after steep monthly declines of 18% in August, 22.5% in July, and 7.7% in June.

In terms of financial performance, Sigachi Industries reported a consolidated net profit of ₹13.26 crore for the first quarter of FY26, an 11% decrease compared to ₹15.03 crore in the same period last year. Despite the profit decline, the company's revenue from operations saw a strong 23% increase, rising to ₹128.2 crore from ₹104.1 crore a year ago. The company attributed the drop in profit to higher expenses, which climbed to ₹107.7 crore from ₹94.1 crore last year.

Sigachi Industries is a prominent manufacturer of microcrystalline cellulose, a crucial excipient used in pharmaceutical formulations. The company also caters to the nutraceutical and food ingredient sectors, holding a strong position in India's pharmaceutical supply chain.

Given the speculative nature of the rally and the mixed financial performance, investors should exercise caution and conduct thorough due diligence before making any investment decisions. It's crucial to consider various factors, including the company's fundamentals, the progress of the India-US trade deal, and overall market conditions.

Disclaimer: This analysis is based on available information and should not be considered financial advice. Investors should consult with certified experts before making any investment decisions.