Synopsis:
Agarwal Industrial Corporation Ltd is in focus after receiving a tender from Indian Oil Corporation Limited worth Rs. 330.05 crore.
A small-cap company engaged in the business activities of manufacturing and trading of Petrochemicals, logistics of bitumen and liquefied Petroleum Gas and energy generation through Wind Mills, is in the spotlight after receiving a tender from Indian Oil Corporation Limited.
With the market capitalization of Rs. 1,378.51 crore, the shares of Agarwal Industrial Corporation Ltd is trading at Rs. 921.60, up by 1.79 percent from its previous day’s close price of Rs. 907.35 per equity share
Work Order
Agarwal Industrial Corporation Limited has successfully secured a significant tender from Indian Oil Corporation Limited (IOCL) for the supply of Bulk Bitumen (VG-30 & VG-40 Grades) to Kakinada locations. The contract includes a firm quantity of approximately 60,500 MT across 11 parcels and an optional quantity of around 33,000 MT across 6 parcels, totaling 93,500 MT.
The estimated value of the tender stands at Rs. 330.05 crore, comprising Rs. 213.56 crore for firm orders and Rs. 116.50 crore for optional orders, based on current market prices. This award marks a notable business achievement for the company, strengthening its presence in the bitumen supply segment.
About the Company & Others
Agarwal Industrial Corporation Limited, incorporated in 1995 and headquartered in Mumbai, is engaged in manufacturing and trading petrochemicals in India and abroad. It operates through five segments: Bitumen and Allied Products, Petroleum Vessels, Petroleum Products, Logistics and Windmill.
The company offers a wide range of bituminous products including viscosity and industrial grades, paving and modified variants as well as waterproofing and insulation materials. It is also involved in bulk transportation of bitumen and LPG, rubber processing oil and power generation through windmills. Formerly known as Bombay Baroda Roadways (India) Limited, it changed its name to Agarwal Industrial Corporation Limited in 2008.
A return on equity (ROE) of about 20.3 percent, a return on capital employed (ROCE) of about 17 percent and debt to equity ratio at 0.69 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 15.4x lower as compared to its industry P/E 19.4x.
In Q1FY26, the company posted revenue of Rs. 594 cr, down 16.1 percent YoY from Rs. 708 cr in Q1FY25 and 27.8 percent QoQ from Rs. 823 cr in Q4FY25. Profit stood at Rs. 13 cr, falling 66.7 percent YoY from Rs. 39 cr and 58.1 percent QoQ from Rs. 31 cr, reflecting sharp pressure on both sales and margins.
Written by Akshay Sanghavi
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