The shares of this microcap company surged around 17 percent after announcing strong Q2 FY 24 results. In one month, the shares have delivered more than 25 percent returns to its shareholders.
With a market capitalization of Rs. 49.39 crores, the shares of Modern Diaries Ltd started today’s trading session flat at Rs. 22. The stock hit a high of Rs. 25.47 making a gain of around 17 percent and closed its day at Rs. 24.68 apiece.
Such a bullish movement was observed after the company announced its June-September results. The company’s revenue marginally decreased by around 3 percent from Rs. 82.71 crores during the June quarter to Rs. 80.18 crores in the September quarter. On a contrasting note, the net profit magnified by 956 percent from Rs. 2.02 crores to Rs. 21.34 crores during the same period.
Comparing these metrics on a YoY basis, the revenue jumped by 89 percent from Rs. 42.29 crores during Q2 FY23 to Rs. Rs. 80.18 crores in Q2 FY24. In addition, the net profit climbed by 403 percent from Rs. 4.24 crores to Rs. 21.34 crores during the same timeframe.
Looking at the important financial ratios, the return on capital employed improved from 9.28 percent during FY21-22 to 23.34 percent in FY 22-23. Furthermore, the net profit margin increased from 2.06 percent to 5.62 percent during the same time horizon.
According to the latest shareholding pattern, the Public or Retail Investors have a considerable stake of 54.24 percent in the company, Promoters have 45.71 percent shares, and the remaining 0.04 percent shares are with DIIs.
Headquartered in Karnal, Modern Dairies Ltd was incorporated in the year 1992. The company is engaged in the business of production of dairy products like packed liquid milk skimmed milk powder whole milk powder infant milk food pure ghee and butter.
Written By Vaibhav Patil
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