The shares of one of the largest manufacturers and dealers of salt gained 14 percent after Tryrock Capital Trust, an insurance company, trimmed its stake in the company.
As per the NSE data, the insurance company sold 1.92 lakh equity shares on Wednesday, which is around 1.07 percent of the equity stake, in Goyal Salt Ltd. at an average price of Rs. 177.09. The total value of the transaction is worth around Rs. 3.4 crore.
Before this, the insurance company had sold 1.14 lakh equity shares in Goyal Salt in November last year at an average price of Rs. 168.68. The total value of this transaction was around Rs. 1.92 crore.
Tryrock Capital Trust held 6.63 lakh shares or 3.7 percent stake in Goyal Salt as per shareholding data till October 2023.
However, even after the news of an insurance company selling such a substantial amount of stakes surfaced, the share price of Goyal Salt rallied 14 percent and is currently trading at Rs. 233, creating a new 52-week high of Rs. 235. It closed today at Rs. 226.5 while its previous close was Rs. 204.95 giving over 10 percent returns in a day.
With a market cap of Rs. 417 crores, the company is held by 4.69 percent of FIIs and 5.82 percent of DIIs, aggregating to 10.51 percent of institutional holding. Though it has a low return on equity of 13.1 percent over the last 3 years, Goyal Salt has given over 50 percent of returns since the listing date.
The company’s annual revenue grew nearly 78 percent outperforming its 3-year CAGR of 17.87 percent and has spent less than 1 percent of its operating revenues towards interest expenses and 2.06 percent towards employee costs in FY23.
The company’s revenues from operations grew 78 percent from Rs. 66 crores in FY22 to Rs. 117 crores in FY23, accompanied by profits of Rs. 1 crore in FY22 increasing to Rs. 4 crores in FY23.
Incorporated in 2010, Goyal Salt Pvt. Ltd. is engaged in the business of refining raw salts from sub-soil brine for industrial salts and edible salts usage in the state of Rajasthan.
The company procures 73 percent of its raw materials from open market purchases, 23 percent from its promoters-controlled entities, and the rest 2 percent from salt land harvesting owned them.
Apart from that, the company produces and supplies salt for soap and detergent industries, industries producing glass, polyester, plastics, rubber, and leather, and chemical industries, textile and dyeing industries. SOURCE
Written by Shivani Singh
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