The shares of the leading Microcrystalline Cellulose powder manufacturers gained up to 7 percent after the company’s subsidiary formed a joint venture to enter into UAE food and pharma market.
With a market capitalization of Rs 2,999.28 crore, the shares of Sigachi Industries Ltd were trading at Rs 92.70 crore, increasing around 3.13 percent as compared to the previous closing of Rs 89.89 apiece.
According to the exchange filing, Sigachi Mena FZCO a wholly-owned subsidiary of Sigachi Industries Ltd, and iConsult Trading Consultancy LLC, a wholly-owned subsidiary of iMass Investments, UAE, have announced the formation of a Joint Venture (JV), “Sigachi Global”, to enter into the growing UAE food and pharma market.
Furthermore, Sigachi Global will create separate entities to manage Sigachi’s core verticals viz. Pharma (excipients and APIs), Food and Nutrition, and Operations and Management (O&M) as required. Sigachi MENA FZCO will hold a 75% stake and iConsult shall hold 25% in the JV. Sigachi Global’s revenue is expected to reach USD 54 million by 2029.
Looking into the company’s financial, Sigachi Industries Ltd’s revenue increased by 61 percent from Rs 69 crore in Q3FY23 to 111 crore in Q3FY24. During the same period, net profits increased by 60 percent from Rs 10 crore to Rs 16 crore.
The company has 3 decades of experience with 5 state of the art manufacturing facilities with a combined capacity of over 14,000 plus MTPA including 2 R&D hubs for Quality Assurance. The company has over 60 widely used excipients and more than 337 customer bases across 52 countries.
As of December 2023, The revenue from exports demonstrated a notable YoY growth of 9.5%, increasing from Rs 1,557 Million to Rs 1,705 Million in 9M FY 24 compared to 9M FY23.
The stock gave a multi-bagger return of 145.50 percent return in six months and a 265.77 percent return in a year. If an investor invests Rs 1 lakh in the firm then it will give a return of Rs 3 .65 lakh in a year.
Sigachi Industries Ltd. (SIL) is one of the world’s major makers of microcrystalline cellulose, with three multi-location facilities in Telangana and Gujarat.
Written by: Abhishek Singh
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