Agrochemical stock jumps up to 18% after company’s net profit jumps 120% in Q4

Shares of Nacl Industries Ltd. surged 18% on Tuesday to reach an intraday high of ₹ 102.00 apiece from the previous close price of  ₹ 86.55. One of the probable reasons for the stock price to surge today is the company’s recent announcement of strong Q4 FY 22-23 earnings. 

The company’s net profit for the March quarter nearly doubled, and revenue for the quarter rose 21.07 percent to ₹598 crore versus ₹ 472 crore last year.

At 11.37 am, the stock was trading at Rs 100.10 on the BSE, up 15.45 percent from its previous close.

In the past month, the stock has jumped around 18.25 percent, ranging from  ₹84.65 to the current price levels. In the last three years, the stock has rallied around 252.73 percent, ranging from ₹28.35 to the current price levels. 

Nagarjuna Agrichem (NACL), manufactures a comprehensive range of pesticide technicals, formulations, and custom-manufactured fine chemicals, and the company exports both technicals and formulation-grade pesticides to some countries in Europe, Asia, including the Middle East, Japan, the USA, Australia, and Africa.

Having a quick walkthrough of the financials reported by the company, the operating revenue increased from ₹ 482 crores in Q3 to ₹598 crores in Q4. Similarly, the net profits of the company, during the same period, increased by 120 percent, from ₹15 crore to ₹ 33 crore. 

On a YoY comparison of the metrics, the revenues significantly improved from ₹ 1,191 crores during FY 21-22 to ₹1,640 crores in FY 22-23. The PAT numbers have shifted upwards within the timeframe mentioned, from ₹ 50 crores to ₹76 crores. The debt-to-equity ratio stood at 1.08 for FY23.

According to the latest data pertaining to the shareholding pattern, promoters of the company hold a 63.83 percent stake, and foreign institutional investors (FIIs) hold a 1.2 percent stake in the company for FY 22-23.

Written by Omkar C

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