This company, which is a manufacturer of triple refined free-flow iodised and industrial salt, announced commissioning a new plant, which caused its stock to surge 2.3 percent in the early trading session of Monday.
Price Movement
With a market capitalization of Rs 357 crore, the shares of Goyal Salt Ltd is currently trading at Rs 199.25, down by 17.5 percent from its 52-week high of Rs 241.70 per share. The stock has given a positive return of 53 percent over the last five years..
About the announcement
On Monday, Goyal Salt announced that it has commissioned its new Salt Refinery Plant in the Kutch district of Gujarat. It has a reach of 5000 outlets and is expecting to reach every household in the next five years.
It also mentioned that with this plant under operation, it will double its turnover to Rs 300 crore in two years. The company added that this New Salt Refinery Plant marks a significant expansion for the company, positioning it as a major player in the Indian salt market and potentially impacting the Indian western and eastern markets as well as the Overseas Market.
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Financial Highlights
The company reported a revenue of Rs 68 crore in H1 FY25, up by 44 percent from its H1 FY24 revenue of Rs 47 crore. It reported a net profit of Rs 9 crore in H1 FY25, up by 350 percent, from its H1 FY24 net profit of Rs 2 crore. It is currently trading at a P/E of 21.81x, lower than the industry average of 33.59x. It has an ROE and ROCE of 15.6 percent and 17.8 percent.
About the company
Goyal Salt Limited is an Indian firm that engages in refining raw salt from subsoil brine in the state of Rajasthan to make industrial and edible salts. Its products include triple-refined free-flow iodized salt, industrial salt, double fortified salt, and triple-refined half-dry salt.
It has a refinery in Nawa City across 1.45 hectares of land with facilities for refining, storage of raw salt, and packaging. In addition, it has lease rights for raw salt harvesting over 18.66 hectares from the Rajasthan government, and procures raw salt on market purchases, promoter-associated parties, and internal harvesting.
Written by Satyajeet Mukherjee
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