De Nora India Limited stock witnessed a sharp increase today and currently trades at a price of Rs 1,048. The scrip is up nearly 10.5 percent as compared to the previous closing levels of Rs 948.10. The company touched its 52-week high mark at Rs 1,080 showing a climb of a whopping 14 percent.
Such a sharp movement in the stock is observed after ace investor Mukul Agrawal bought a fresh stake of 1.37 percent, equivalent to 72,785 shares, in the company.
Having a look at the returns provided keeping a horizon of one year, the stock has been able to provide multibagger returns of around 107 percent to its shareholders. It means that if someone would have invested Rs 1,00,000 in the stock, it would have converted to Rs 2,07,000 within a period of one year.
De Nora India Limited is engaged in the business of manufacturing and distributing chemicals. The Group is organized into two business segments which are the ‘Electrode Technologies’ and the ‘Water Technologies’ business.
The first segment mentioned above consists of the production and sale of electrodes used for the production of basic chemicals such as chlorine, caustic soda, etc and the latter consists of the production and sale of equipment, systems, and technologies used in the water treatment sector.
Having a look at the financials of the company, basic parameters such as the revenues and net profits have improved during the recent quarters with revenues shifting from Rs 14 crores in Q2 to Rs 19 crores in Q3 and net profit figures moving from Rs 2 crores in Q2 to Rs 5 crores in Q3.
In addition to the above, the company’s profitability ratios have shown an upward trend on a YoY basis as far as the percentages are concerned. ROE increased from 8.8 percent in FY20-21 to 20.76 percent in FY21-22. Moreover, ROCE improved from 11.84 percent during FY20-21 to 28.46 percent in FY21-22.
Having a minimal debt to equity ratio of 0.01 during the FY19-20, the company, in the last two financial years, has been debt free.
As per the data available for the quarter ending December 2022, promoters hold a constant 53.68 percent stake in the company. Lately, FIIs have shown interest in the company with fresh stakes of 0.52 percent and 0.56 percent during the second and third quarter of FY22-23 respectively.
Written by Amit Madnani
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