The shares of this smallcap company locked a 10 percent upper circuit after reporting an increase in net profits by 75 percent YoY. In one year, the stock has delivered more than a 200 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 691 crores, the shares of NILE Ltd started Tuesday’s trading session on a higher note at Rs. 2,149 compared to its previous close of Rs. 2,096. During the trading session, the shares clocked a 10 percent upper circuit at Rs. 2,305.60 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company announced its Q1FY25 results. Quarterly, the revenue surged by 41 percent from Rs. 174.122 crores during the March quarter to Rs. 245.47 crores in the June quarter. In addition, the net profits jumped by 42 percent from Rs. 6.33 crores to Rs. 8.96 crores during the same timeframe.
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Comparing the same metrics on a YoY basis, the revenue zoomed by 52 percent from Rs. 161.25 crores during Q1FY24 to Rs. 245.47 crores in Q1FY25. On the other hand, the net profits magnified by 75 percent from Rs. 5.11 crores to Rs. 8.96 crores during the same period.
Furthermore, the company’s subsidiary Nile Li-Cycle Private Limited received all statutory approvals for Phase 1 of its Lithium-ion battery recycling plant located at Industrial Park, Maheshwaram, Ranga Reddy (Dist), Telangana.
The company has begun engaging with Original Equipment Manufacturers (OEMs), vendors, traders, wholesalers of battery scrap, and other sources to secure raw materials.
Moreover, the company expects sales to grow in the coming months, with a gradual acceleration anticipated as it builds relationships with new vendors and suppliers.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 13.55 percent and a return on capital employed (RoCE) of 17.80 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 3.71 percent.
Prominent Investor:
According to the BSE data, Ace Investor Mrs Dolly Khanna entered the stock in June 2024, by acquiring 32,923 equity shares equivalent to a 1.10 percent stake in this company. The current holding value of his investment amounts to Rs. 7 crores.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters hold 50.43 percent of the stake, the Public holds 49.42 percent of the shares, and the remaining 0.15 percent of the stakes are held by Foreign Institutional Investors (FIIs).
Company Profile:
Headquartered in Hyderabad, NILE Ltd was incorporated in 1984. The company is a secondary manufacturer of Pure Lead and Lead Alloys which are supplied to the manufacturers of Lead Acid batteries, PVC stabilizers and Lead-Oxide. Apart from this, the company also deals in Power Generation through wind farms.
Written By Vaibhav Patil
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