During Thursday’s trading session, shares of a company specialising in the manufacturing of inorganic chemicals and base metals are in focus on the BSE, after the company announced acquiring a 40 percent stake in a lead recycling company.
With a market cap of Rs. 633 crores, at 11:34 a.m., the shares of POCL Enterprises Limited were trading in the red at Rs. 227 on BSE, down by around 2 percent, as against its previous closing price of Rs. 231.75. The stock has delivered multibagger returns of over 176 percent in one year, but has fallen by nearly 8 percent in the last one month.
What’s the News
The Board of POCL Enterprises Limited has given the green light to a strategic investment and entered into a Shareholders Agreement & Share Purchase Agreement to acquire a 40 percent stake in PlanetFirst Green Private Limited, according to recent filings with the BSE.
As part of this investment, POCL Enterprises will acquire 40 percent of PlanetFirst’s equity shares and 85 percent of its non-cumulative non-convertible redeemable preference shares from its existing shareholders and promoters. The total investment amounts to Rs. 19 crores.
The acquisition is expected to be completed on or before 30th June 2025. Once finalised, PlanetFirst Green Private Limited will officially become an Associate Company of POCL Enterprises Limited.
The acquisition of a lead recycling business aligns with POEL’s strategic goals of boosting resource efficiency and expanding its market share. This move is also expected to create significant value for POEL through strong synergies with PlanetFirst’s existing shareholders.
Incorporated in July 2022, PlanetFirst is engaged in the business of lead recycling and has a smelting capacity of 21,000 MTPA and refining capacity of 21,000 MTPA. It posted a turnover of Rs. 79.43 crores in FY25 and Rs. 30.96 crores in FY24.
Financials & More
POCL Enterprises reported a significant growth in the revenue from operations, experiencing a rise of nearly 21 percent YoY, increasing from Rs. 308 crores in Q4 FY24 to Rs. 372 crores in Q4 FY25.
Similarly, during the same period, the company’s net profit increased from Rs. 7 crores to Rs. 11 crores, representing a rise of around 57 percent YoY.
POCL Enterprises Limited is engaged in the business of manufacturing metallic oxides such as zinc oxides & lead oxides, metals such as zinc metal & lead metal and PVC stabilisers. The company serves the requirements of the battery, rubber and PVC pipes & profile industries. It has manufacturing units in Puducherry, Thiruvallur and Maraimalai Nagar, Tamil Nadu.
The company’s existing lead refining and smelting unit is currently operating at full capacity, and hence the management has decided to set up an additional facility, which will add 11,000 MTPA each of refining and smelting capacity.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
