The shares of India’s largest zinc oxide manufacturer rose 16% reaching a 52-week high price of ₹344.70 per share on Friday, following the company’s announcement of a 307% increase in net profit for the June quarter.
At 12:15 p.m., J.G.Chemicals Ltd shares were trading at ₹327.85 per share, up 10.37 percent from the previous close price on the exchange. The company has a market capitalization of ₹1,285 crore.
What Happened:
J.G.Chemicals Ltd’s exchange filings revealed a robust financial performance for Q1 FY25, with a consolidated net profit of ₹16 crores, representing a 307% year-over-year increase. The company’s total revenue for the quarter amounted to ₹203 crores, a 16.3% rise from the same period last year.
On a quarter-on-quarter basis, the company’s net profit surged by 16.9%, while revenue grew by 14.5%. Additionally, EDBITA Margins have increased to 11.3% in Q1FY25 and PAT margins have improved to 7.5%.
About the company:
J.G.Chemicals Ltd’s is India’s largest zinc oxide manufacturer in terms of production and revenue. The company sells various grades of zinc oxide and is among the top ten manufacturers of zinc oxides globally. From an initial customer base of about 10, today JGCL serves the requirements of over 200 domestic customers and over 50 global customers in more than 10 countries.
The company serves a broad range of industrial applications with extensive customization, spanning sectors such as Rubber and Tyre, Ceramics, Paints & Coatings, Pharmaceuticals & Cosmetics, Electronics & Batteries, Agrochemicals & Fertilizers, Specialty Chemicals, Lubricants, Oil & Gas, and Animal Feeds.
As of 2022, the company held a 30% market share in zinc oxide manufacturing. Its prestigious clients include MRF, Apollo Tyres, Ceat, JK Tyre, Asian Paints, and many others.
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As of June 2024, Foreign Institutional Investors (FIIs) have incrementally increased their stake in the company to 6.33%, up from 6.22% in march 2024. Meanwhile, promoters hold a 70.99% stake, and retail investors possess 19.04% of the stake.
In the last six months, J.G.Chemicals Ltd shares have risen by 13%, and over the past 12 months, they have increased by 44%.
Written by Omkar Chitnis
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