Shares of this smallcap company slumped up to 4.5 percent in Thursday’s trading session after Quant Mutual funds sold their stakes in the company. In one year, the shares have delivered more than 80 percent to its shareholders.
With a market capitalisation of Rs. 4,484 crores, the shares of India Pesticides Ltd started Thursday’s trading session on a higher note at Rs. 400 compared to its previous close of Rs. 395. The shares hit a low of Rs. 382.55, making a loss of 4.5 percent and closed the day at Rs. 393 apiece.
According to the NSE bulk deal data, the Quant Mutual Fund (Quant Active Fund) sold 5,76,800 equity shares, or half a percent of paid-up equity, in the chemical manufacturing company in the open market transaction. The shares were sold at an average price of Rs 376.12 per share. Moreover, as of December 2023, the mutual fund held a 1.59 percent stake in the company.
Coming onto the company’s financial statements, the revenue increased marginally by around 0.5 percent from Rs. 201 crores during the June quarter to Rs. 202 crores in the September quarter. In addition, net profits zoomed by 25 percent from Rs. 16 crores to Rs. 20 crores during the same timeframe. Furthermore, they are set to announce their quarterly results on 7 February.
Earlier, the company acquired land adjacent to the Sandila plant to facilitate future expansion efforts and plans to incorporate additional blocks for intermediates and technical by H2 FY24, augmenting production capacity by 2,000 metric tonnes. Moreover, the company has a capex plan of Rs. 100 crores for FY24 and aims to keep redeploying the cash generated as capex.
Due to increasing expenditure, the profitability metrics of the company declined with the return on equity (RoE) decreasing from 30.75 percent during FY 21-22 to 20.30 percent in FY 22-23, and, the return on capital employed (RoCE) showed a downward movement from 40.33 percent to 5.37 percent during the same timeframe. Furthermore, the net profit margin decreased from 9.4 percent during FY 21-22 to 5.7 percent during FY 22-23.
Headquartered in Uttar Pradesh, India Pesticides was incorporated in 1984. The company is involved in the manufacturing of agro-chemicals, specifically pesticides. They are known for being the sole Indian manufacturer and among the top five manufacturers globally for several Technicals in fungicides and herbicides. Their products include herbicides, which are used to control unwanted plants, and fungicides, which are used to control fungal diseases in crops.
Written By Vaibhav Patil
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