In Tuesday’s trading session, the shares of a leading manufacturer of white oils by revenue surged by 5.8 percent on BSE to hit an intraday high at Rs. 226.65, after the company’s arm secured a significant order valued at approx. Rs. 375 crore from the Abu Dhabi National Oil Company.
As of 10:33 a.m., the shares of Gandhar Oil Refinery (India) Limited were trading in the green at Rs. 222.35, marking a 3.8 percent rise from its previous closing price of Rs. 214.2, while the company’s market capitalization stood at Rs. 2,176.2 crore.
What’s the news:
Gandhar Oil Refinery informed the stock exchanges regarding an order won by Texol Lubritech FZC, the company’s Foreign Material subsidiary, from ADNOC.
Founded in 1971, Abu Dhabi National Oil Company (ADNOC) is a leading diversified energy group, wholly owned by the Abu Dhabi Government.
Under the terms of the agreement, Texol Lubritech FZC will undertake the manufacturing, packaging, labelling, and make available the Products for ADNOC DISTRIBUTION on a contractual basis spanning 3 years.
The average annual volume is expected to be 30 Million Litres for each year from 2024 through 2026, while the contract further specifies that unit prices will be determined based on the price formula as per the contract.
The estimated annual value of the contract amounts to US$45 million, approximately equivalent to Rs. 375 crores, for each year 2024, 2025, and 2026.
Previous Order:
Earlier on 2nd April, Gandhar Oil Refinery was awarded a work order worth Rs. 15.2 crore by BESCOM. The contract entails supplying a total quantity of 1500 KL of New Insulating Oil Uninhibited (U) Type-II Transformer Oil during April and May 2024.
Financials:
In terms of financials, the revenue from operations stood at Rs. 939.24 crore in Q4 FY23-24, declining by 4.8 percent YoY from Rs. 986.7 crore in Q4 FY22-23, while the after-tax profit fell by 57.3 percent to Rs. 12.11 crore from Rs. 28.4 crore, during the same period.
Further, on a year-on-year basis, the Earnings Before Interest, Taxes,
Depreciation, and Amortisation, or EBITDA declined from Rs. 46.6 crore in Q4 FY22-23 to Rs. 33.6 crore in Q4 FY23-24, representing a fall of nearly 29 percent.
Stock performance:
The stock has delivered negative returns of nearly 25.6 percent in one year and around 18.4 percent of negative returns year-to-date.
About the company:
Incorporated in 1992, Gandhar Oil Refinery (India) Limited is principally engaged in three segments namely, manufacturing and trading of petroleum products/specialty oils, trading of noncoking coal, and providing consignment/del-credere agency services for the sale of polymers to local markets.
The company produces a wide range of specialty oils and lubricants like white oils, waxes, jellies, automotive oils, industrial oils, transformer oils, and rubber processing oils, sold under its flagship brand “Divyol”.
Written by Shivani Singh
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