This Ace Investor Ashish Kacholia stock which deals in the business of manufacturing and trading of Petrochemicals (Bitumen and Bituminous Products), logistics, and LPG and Wind Mills power generation, surged upto 4 percent after entering into a supply agreement for Bulk Bitumen with BPCL for ~Rs. 303 crore.
Price Movement
In Friday’s trading session, Agarwal Industrial Corporation Ltd‘s share price touched a day’s high of Rs. 991.80, which was up by 3.96 percent. The share price reiterated from the day’s high and was trading at Rs. 945.95, which is 0.84 percent lower than the previous closing price of Rs. 954.
In the past year, the stock has delivered a negative return of around 4 percent and has underperformed the Nifty Index.
What Happened?
The company’s stock was in focus after Agarwal Industrial Corporation entered into a Supply Agreement with Bharat Petroleum Corporation Limited (BPCL) for the supply of Bitumen VG30 and VG40 from its facilities of Haldia, Karwar, Mangalore and Taloja as per BPCL requirements. The agreement is not a related party and is entered on an arms-length basis.
The total deliverable value is ~Rs. 303 crore as per terms & conditions of the tender and the order period is for 1 year and can be extended further by another year at the discretion of BPCL.
Q3FY25 Financial Performance
Their Q3FY25 results show revenue from operations of Rs. 542 crore which increased by 11.06 percent year on year, from Rs. 488 crore in Q3FY24. Its net profit increased by 0.27 percent year on year, from Rs. 27.62 crores in Q3FY24 to Rs. 27.70 crores in Q3FY25.
Business Segment
The company earns its operational revenue from Ancillary Infra (Bitumen and Allied Products) which contributes around 78.57 percent, followed by 14.78 percent from Petroleum Vessels operating and charting, 2.67 percent from Petroleum products, 3.52 percent from Logistics, 0.02 percent from Windmill and the remaining 0.44 percent from Others.
Most of the operating profit is earned from the Ancillary Infra segment, followed by Petroleum Vessels, Logistics, Petroleum products, and others. Windmill segment losses extended on a year-on-year basis.
Ace Investor Stake
As of December 2024, Ace Investor Ashish Kacholia held around a 4 percent stake in the Agarwal Industrial Corporation. The stake is consistent from the September 2023 quarter.
About the company
Agarwal Industrial Corporation Limited, established in 1995, specializes in manufacturing and trading bitumen and allied products, logistics of LPG, and energy generation through windmills across India.
Written by Santhosh S
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