In Monday’s trading session, shares of a global pioneer in the manufacturing of Cocoa Butter Equivalent (CBE), exotic speciality fats & butter, hit a 5% upper circuit on BSE to Rs. 664.45, after the company announced the start of commercial operations at its new fractionation plant.
The shares of Manorama Industries Limited opened in the green at Rs. 661, up by nearly 4.4 percent, as against its previous closing price of Rs. 632.85, with a market capitalisation of Rs. 3,960 crore.
What’s the news:
Manorama Industries informed the stock exchanges regarding the commencement of commercial production from its new cutting-edge fractionation plant which has a capacity of 25,000 tonnes per annum (TPA). This new plant increases the company’s total fractionation input capacity to 40,000 TPA.
Fractionation is the key process to obtain CBE and Exotic Specialty Fats and Butter. The added fractionation capacity will enable Manorama Industries to become a leading Indian manufacturer in the global CBE and specialty butter & fats market.
“With this capacity enhancement, our revenues may significantly all things going good may increase to approximately Rs. 675 – Rs. 700 Crore for FY25,” the company’s President commented.
Previous News:
Earlier on March 8th, the Board of Manorama Industries approved a stock split in a 1:5 ratio, such that 1 equity share having a face value of Rs. 10 each, will be sub-divided into 5 equity shares having a face value of Rs. 2 each.
Financial & Stock Performance:
In terms of financials, the revenue from operations stood at Rs. 129.3 crore in Q4 FY23-24, rising by 27 percent YoY from Rs. 101.7 crore in Q4 FY22-23, and the net profit grew by 25 percent to Rs. 12.5 crore from Rs. 10 crore, during the same period.
Further, the management aims to maintain the average asset turnover to nearly 4.5 to 5 times in FY24-25, driven by improved realisations and operational efficiencies.
On a year-on-year basis, the Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA increased from Rs. 56.4 crore in FY22-23 to Rs. 73.5 crore in FY23-24, representing a growth of 30.2 percent.
The stock has delivered multibagger returns of nearly 108 percent in one year and around 65.5 percent of positive returns year-to-date.
About the company:
Established in 2005, Manorama Industries Limited is engaged in manufacturing, processing and exporting of specialty fats like shea butter, sal butter, kokum butter, kokum oil, mowrah fat and several value-added tailor-made products that form the ingredients of Cocoa Butter Equivalents (CBE).
The company manufactures, processes and exports exotic butter extracted from shea seeds, sal seeds, mango kernel, mowrah seeds, kokum seeds, and chiuri seeds for usage in cosmetics as specialty fats, chocolate and confectionaries industries.
Written by Shivani Singh
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