In Thursday’s session, the share price of a company engaged in the business of production of distillery variants moved up by 19 percent on NSE to hit a new 52-week high at Rs. 416.7, after the company’s Board scheduled a meeting to consider the proposal for issue of bonus shares.
With a market cap of Rs. 333.7 crores, at 11:04 a.m., the shares of Aurangabad Distillery Limited were trading in the green at Rs. 407, up by 16.2 percent, compared to its previous closing price of Rs. 350.35.
What’s the news:
According to the latest regulatory filings with the NSE, a meeting of the Board of Directors of Aurangabad Distillery is scheduled to be held on 2nd September, that is Monday, to consider the following two key matters.
The Board will review the proposal for an increase in the company’s authorised share capital and alter the capital clause in the memorandum of association (MoA) of Aurangabad Distillery.
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Additionally, the Board will also consider the issue of bonus shares to shareholders. Both proposals are subject to approval by the company’s shareholders.
Financial:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 10 percent from Rs. 119 crores in FY23 to Rs. 131 crores in FY24.
Similarly, its net profit increased during the same period from Rs. 17 crores to Rs. 21 crores, indicating a rise of nearly 23.5 percent YoY.
The stock has a P/E ratio of 16, compared to the industry’s P/E ratio of 39.3, indicating that the stock is trading at a lower price or in other words, the stock is undervalued.
In terms of return ratios, Aurangabad Distillery has reported a return on equity (ROE) of 31.5 percent, and a return on capital employed (ROCE) of 29.7 percent.
About the company:
Incorporated in 2000, Aurangabad Distillery Limited is one of the leading manufacturers of rectified spirit, denatured spirit, neutral alcohol, potash, bio-potash and de potash vinnass (DPV).
The company operates a molasses-based distillery where it performs PLC-based distillation and manufactures spirits containing 95 percent alcohol by nature along with manufacturing alcohol by the process of rectification.
Written by Shivani Singh
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