Shares of this microcap company surged 6 percent in Wednesday’s trading session after entering into an MOU with Tamil Nadu Government. The shares have delivered a 50 percent return to its investors in just five trading sessions.
With a market capitalisation of Rs. 890 crores, the shares of Pondy Oxides & Chemicals Ltd started Wednesday’s trading session on a higher note at Rs. 798.05, gaining around 6 percent compared to its previous close of Rs. 728.25, which is also recorded as the company’s fresh 52-week high and are currently trading at Rs. 765 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had entered into a Memorandum of Understanding (MoU) with Tamil Nadu Guidance, the nodal agency of the Government of Tamil Nadu for Investment Promotion and Facilitation. The MOU was signed and exchanged on 8th January 2024 at Tamil Nadu Global Investors Meet 2024, Chennai.
The company entered into an MOU, to set up state-of-the-art recycling and manufacturing plants for non-ferrous metals, lithium-ion batteries ( usually used in EV vehicles), paper, plastics and rubber contributing to the sustainability and Circular economy of Tamil Nadu.
Moreover, the company proposes to invest Rs. 300 crores to Rs. 500 crores in the Proposed Projects in the next 5 years in the State of Tamil Nadu and further proposes to employ 1200 people.
Furthermore, the Government of Tamil Nadu has agreed to provide facilitation and support to the company in the form of necessary infrastructural support and regulatory facilitation subject to applicable laws including uninterrupted power supply.
Coming onto the company’s financial statement, the revenue increased by 22 percent from Rs. 324.94 crores in the June quarter to Rs. 396.83 crores during the September quarter. In addition, the net profits zoomed by 39 percent from Rs. 4.10 crores to Rs. 5.69 crores during the same timeframe.
The company is planning to invest around Rs. 100 crores in plant and machinery in the next one to one-and-a-half years and they are targeting to double capacities in the next two years, specifically in smelting and refining capacities for lead.
Furthermore, the company actively exports to countries like South Korea, Japan, Indonesia, and to Middle -East. It exports 60 percent of the production.
Headquartered in Chennai, Pondy Oxides & Chemicals was incorporated in 1995. The company’s principal activities are converting Lead Scraps of various forms into Lead Metal and Alloys.
They carry out smelting of Lead Battery Scrap to produce secondary lead metal which is further transformed into Pure lead and Specific Lead Alloys. Further company also manufactures Zinc metal and Zinc Oxide.
Written By Vaibahv Patil
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