Ashish Kacholia primarily engaged in the business of manufacturing, trading, and logistics of Petrochemicals, Liquefied Petroleum Gas, and many others jumped upto 5 percent in the day’s trade upon receiving work order worth Rs. 255 Crores from HPCL.
Price Action
With a market capitalization of Rs. 1,825 Crores, the shares of Agarwal Industrial Corporation Limited were trading at Rs. 1,220 per equity share, up 3 percent from the previous day’s close price of Rs. 1,184.
What Happened
Agarwal Industrial Corporation Limited has entered into a supply agreement with Hindustan Petroleum Corporation Limited to supply 9,000 MT of VG 40 and 49,000MT of VG30 Bulk Bitumen from the company’s Taloja unit for one year for a consideration of Rs. 255 Crores and the agreement is extendable for further 1 year at the discretion of HPCL.
About the Company
Agarwal Industrial Corporation Limited is primarily engaged in the business of manufacturing, trading, and logistics of Petrochemicals (Bitumen and Bituminous Products) and liquefied Petroleum Gas, operating and chartering Petroleum Vessels, energy generation through windmills, and many others.
Coming to the revenue segmentation, it generated 66.49 percent from Bitumen & allied products, 25.07 percent from operating and chartering Petroleum Vessels, 3.95 percent from Logistics, 3.65 percent from Petroleum Products, 0.10 percent from Wind Mills, and 0.71 percent from others.
Ace Investor Investment
Ace Investor Ashish Kacholia holds a 4 percent stake in the company consisting of 5.98 Lakh equity shares. He made a fresh entry into the company in September 2022 by purchasing a 2.57 percent stake in the company consisting of 3.72 lakh equity shares.
Financials and Ratios
Its revenue from operations grew by 40 percent from Rs. 233.76 Crores in Q2FY24 to Rs. 327.49 Crores in Q2FY25, accompanied by profits of Rs. 16.01 Crores to Rs. 18.44 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 21.79 percent, and a return on capital employed (ROCE) of 19.53 percent. It has reported a debt-to-equity ratio of 0.52.
Written by: Bharath K.S
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