Shares of this small-cap stock involved in the ‘Paper’ industry gained more than 10 percent in Friday’s trading session after announcing Q1FY24 results.
With a market capitalization of Rs 1,240 crores, the stocks of Satia Industries Limited closed at Rs 124.05 on Friday, a gain of approximately 10.27 percent as compared to the previous close of Rs 112.50 apiece. One of the probable reasons for a surge in share prices today is the announcement of financial results for the quarter ended June 2023.
In addition, the company’s Board also declared an Interim Dividend of Rs 1 per equity share, i.e., a 100 percent payout on the Face Value of Rs 1 each. Record Date for the payment of the mentioned dividend is fixed to be 24th August 2023.
Coming onto the results, the company, on a sequential basis, saw the basic indicators such as the operating revenues and net profits moving in opposing directions with the former moving down from Rs 521 crores during Q4FY22-23 to Rs 481 crores during Q1FY23-24, and, the net profits soaring from Rs 46 crores to Rs 84 crores keeping the timeframe the same.
Year-on-Year, the company proved to be successful in keeping a good momentum in numbers and reported an increase in operating revenues from Rs 417 crores during June 2022 to Rs 481 crores during June 2023, and, net profit numbers showing tremendous growth from Rs 30 crores to Rs 84 crores exhibiting an increase of 180 percent.
Historically, the company’s profitability metrics have seen decent growth with the return on equity (RoE) increasing from 18.47 percent during FY21-22 to 26.21 percent during FY22-23, and, the return on capital employed (RoCE) taking a shift from 14.76 percent to 20.33 percent.
According to the June 2023 quarter shareholding data, the company’s Promoters hold a 52.46 percent stake followed by Retail Investors holding a 46.76 percent stake in the company.
Satia Industries Limited is engaged in the business of manufacturing and selling writing & printing paper products in India and overseas. The product portfolio of the company includes coloured paper, cartridge paper, ledger paper, etc. The products are been used for the purpose of printing books, directories, diaries, and many more.
Written by Amit Madnani
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