Share price of a leading Specialty Chemicals company in the pigments and dyes segment, moved up by 19.95 percent to Rs. 225.45 on Tuesday, compared to its previous closing price of Rs. 187.90 on BSE, after the company announced receiving environmental clearance to expand its total production capacity.
With a market cap of Rs. 282 crore, the shares of Vipul Organics Ltd. opened at Rs. 188.0 on February 20th and the stock is currently trading in the green at Rs. 220.50, up by 17.35 percent.
The company has delivered positive returns of over 66.3 percent in the last six months, whereas nearly 95.72 percent in the last one year. So far in 2024, it has given positive returns of more than 25.8 percent.
According to the recent filings on BSE, Vipul Organics Limited has received Environmental Clearance for the proposed expansion of synthetic organic pigments & dyestuffs, pigment dispersion, naphthols, fast salts and vat dyes manufacturing at their current Ambernath facility.
In the first phase, the company plans to increase its capacity to 250 MT, and the cost of this expansion will be through a mix of internal accruals and external borrowings. The company has already raised Rs. 5 Crore from its promoters through the issue of warrants.
The company received environmental clearance from the Government of India, Ministry of Environment, Forest and Climate Change, Maharashtra.
Furthermore, with this expansion, the Ambernath facility will become the country’s single largest pigment producer and will help the company to increase its total production capacity from the existing 10 MT to 508 MT at Ambernath, according to the filings.
In terms of financials, the revenue from operations of Vipul Organics increased by 2.43% from Rs. 36.53 crore in Q2 FY23-24 to Rs. 37.42 crore in Q3 FY23-24, accompanied by a decrease in net profit by around 19.2% to Rs. 0.80 crore in Q3 FY23-24 from Rs. 0.99 crore in Q2 FY23-24.
Established in 1972, Vipul Organics Limited is amongst the foremost manufacturers of pigments, dyestuff, lake colours and pigment intermediaries or fast salts in India. The company has 3 manufacturing facilities spread across Maharashtra and has a global footprint in more than 50 countries.
Written by Shivani Singh
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