Shares of this micro-cap company associated with the ‘commodity chemicals’ industry hit the 5 percent upper circuit in Tuesday’s trading session after the company posted results for Q2FY24. Year-to-date, the company’s stock has delivered stellar returns of around 75 percent to its stakeholders.
With a market capitalization of Rs 40 crores, the stocks of Vinyoflex Limited opened their trading hour on Tuesday at Rs 91.95 and went on to hit the 5 percent upper circuit at Rs 91.96. Currently, the stock is locked at the same price.
Such bullish sentiments around the company’s stock were observed after it announced financial results for the quarter ended September 2023.
On a QoQ basis, the company reported an increase in both the basic business indicators such as the operating revenues and net profits (from continuing operations).
The former increased from Rs 9.34 crores during Q1FY23-24 to Rs 11.04 crores during Q2FY23-24, and, the latter, during the same period, shifted up from Rs 54.82 lakhs to Rs 96.73 lakhs representing a jump of around 76 percent.
Yearly, the company has shown opposing movements as far as the abovementioned metrics are concerned. The operating revenues, on one end, reduced from Rs 12.66 crores during Q2FY22-23 to Rs 11.04 crores during Q2FY23-24, and, the net profits, keeping the timeframe the same, moved up from Rs 59.33 lakhs to Rs 96.73 lakhs.
Historically, the company has reported consistent growth in the basic profitability metrics over the past few financial years with the return on equity (RoE) recently moving up from 9.21 percent during FY21-22 to 13.98 percent during FY22-23, and, the return on capital employed (RoCE), during the same period, increasing from 10.78 percent to 15.96 percent.
As per the shareholding pattern data available for the September 2023 quarter, the company’s Promoters hold a 51.23 percent stake followed by the Public (retail) investors holding the remaining 48.77 percent stake in the company.
Vinyoflex Limited is a company based in India that is engaged in the business of manufacturing polyvinyl chloride (PVC) sheetings. The company’s product portfolio comprises PVC films and sheets with various applications in rainwear, shower curtains, insulation tape, and others.
Written by Amit Madnani
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