The shares of the leading manufacturers of PVC & UPVC gained up to 9 percent after the company bagged three prestigious work orders from domestic clients for Rs 9.76 crore.
With a market capitalization of Rs 416.73 crore, the shares of Dhabriya Polywood Ltd were trading at Rs 385.00 per share, increasing around 6 percent as compared to the previous closing price of Rs 364.30 apiece.
Reason for rise:-
The shares have seen bullish movement after Dhabriya Polywood Ltd bagged three prestigious work orders from domestic clients for Rs 9.76 crore. The first order received from Concient Group (Heritage Max) for Supply & Installation of a Modular Kitchen for Rs 4.52 crore, second and third orders received from Puravankara Group and DLF Group, respectively for the Supply & Installation of uPVC, Aluminium Windows & Doors worth Rs 5.24 crore.
Financial performance:-
Looking forward to the company’s financial condition, revenue increased slightly by 7 percent from Rs 54.65 crore in Q2FY24 to Rs 58.05 crore in Q2FY25, net profit increased by 16 percent from Rs 3.59 crore to Rs 4.18 crore.
Business Segment Performance:-
In H1 FY25, the company’s PVC Profile (B2B) segment earned ₹66.9 crores, up 6.1%, while UPVC Windows revenue rose 11.5% to ₹29.4 crores. Modular Furniture surged 32.7% to ₹20.5 crores. The order book stands at ₹135 crores, mainly from UPVC Windows and Modular Furniture projects.
Management Insights:-
The management remains optimistic about sustained growth, especially in the Modular Furniture segment with a 32% annual growth target. By focusing on higher-margin products and phasing out lower-margin ones, they are confident in achieving a 25% year-on-year growth despite challenges from extended rainy seasons.
Margin guidance:-
The company targets gross margins above 35%, aiming to enhance profitability through high-value products. Management expects gradual improvement in EBITDA margins, aiming to sustain them above 15% in H2 FY25, reflecting a focus on long-term margin growth and operational efficiency.
Ace investor Ashish Kacholia holds 7,22,345 shares, i.e. equivalent to 6.67 percent of the company as of Septmber 2024.
Ratio analysis:-
The company’s profitability measures show an incline in return on equity (RoE) from 12.33 percent in FY 22-23 to 17.09 percent in FY 23-24, while, during the same period return on capital employed (RoCE) increased from 15.40 percent to 23.03 percent. In contrast, the net profit margin (NPM) was 6.65 percent in fiscal year 23-24.
Company profile:-
Dhabriya Polywood Limited manufactures and supplies extruded chloride (PVC)/un-plasticized polyvinyl chloride (uPVC) profile sections, as well as Dstona sheets and moldings for a variety of furnishing and furniture applications, uPVC windows and doors, and aluminum window systems. Its divisions include plastic items and modular furniture.
Written by:- Abhishek Singh
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