During Friday’s trading session, the shares of one of the leading manufacturers of inorganic pigments and surfactants jumped 1.3 percent to Rs. 566.9 on BSE, after the company announced acquiring industrial plots for expansion and new projects in Tamil Nadu.
With a market cap of Rs. 1,635.2 crores, at 01:31 p.m., the shares of Ultramarine & Pigments Limited were trading in the green at Rs. 560, up by 0.03 percent, as against its previous closing price of Rs. 559.85.
What’s the news:
According to the latest regulatory filings with the BSEs, Ultramarine & Pigments Limited has acquired industrial plots admeasuring 32.12 acres from the State lndustries Promotion Corporation of Tamil Nadu Limited (SIPCOT).
This land acquisition is intended to support the company’s future expansion and new projects at the SIPCOT lndustrial Park in Manapparai, Tiruchirappalli, Tamil Nadu.
The company has completed the necessary payments to SIPCOT, and a 99-year lease agreement has been executed between SIPCOT and Ultramarine & Pigments Limited.
Previous News:
On 7th November, the Board of Ultramarine & Pigments Limited approved a debottlenecking and capacity enhancement for the Pigments plant, aiming to increase its capacity by 1,200 MT with an investment of Rs. 2,500 lakhs.
The capacity expansion will be financed through a combination of internal accruals and debt. The total available capacity will increase from 6,000 MT to 7,200 MT.
The current capacity utilization of the existing 6,000 MT is at 85%. The period within which the proposed capacity is to be added is within 6 months from 7th November 2024.
Financials:
The company reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 23 percent, from Rs. 131 crores in Q2 FY24 to Rs. 161 crores in Q2 FY25.
Similarly, its net profit increased during the same period from Rs. 17 crores to Rs. 19 crores, representing a marginal rise of nearly 12 percent YoY.
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Key Financial Ratios:
In terms of key financial metrics, Ultramarine & Pigments Limited has a Return on Equity (RoE) of 7 percent and a return on capital employed (RoCE) of 9.21 percent. Additionally, the company’s debt-to-equity ratio stands at 0.08.
Stock Performance:
The stock has delivered positive returns of nearly 40 percent in one year, as well as around 22.7 percent returns in the last six months. So far in 2024, the shares of Ultramarine & Pigments Limited have given positive returns of about 33.3 percent.
About the company:
Ultramarine & Pigments Limited is engaged in the business of manufacturing and selling of inorganic pigments, detergents, and cosmetic-grade surfactants, along with IT-enabled services, serving both domestic and international markets.
The company’s manufacturing facilities are located in Ranipet (Vellore District) and Ambattur (Chennai) in Tamil Nadu, as well as Naidupet (SPSR District) in Andhra Pradesh.
Additionally, the company generates power through wind turbines installed in Tamil Nadu, primarily for self-consumption. Its IT-enabled services are conducted from offices in Chennai and Ranipet.
Written by Shivani Singh
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