The shares of this micro-cap metal stock engaged in manufacturing and selling chemicals and ready-made garments hit a 5 percent upper circuit on opening on Wednesday after the company reported an exceptional 2,805 percent YoY increase in net profits and strong revenue growth in its recent quarterly results.
Share Price Movement
During Wednesday’s trading session, the share price of Ritesh International Ltd opened at a high of Rs.26.49 per share, hitting the 5 percent upper price band from its previous close of Rs.25.23 per share. Over the past five years, the shares have delivered returns on over 530 percent returns.
What Happened
Such a bullish movement in the stock price was the result of the company’s increase in revenue and net profits in the recent quarter.
According to its recent filing, in the quarter ending September 2024, Ritesh International Ltd reported a 28 percent increase in revenue to Rs.25.91 crore compared to Rs.20.30 crore in Q2 FY24. However, on a quarter-over-quarter basis, the company saw a 2 percent decrease in revenue from Rs.26.41 crore in Q1 FY25.
In the same period, the company reported an exceptional increase in net profit of 2,805 percent to Rs.24.11 lakhs in Q2 FY25, up from Rs.0.83 lakhs in Q2 FY25 and 68 percent from Rs.14.32 lakhs in Q1 FY25.
The EBITDA of the company reached Rs.0.64 crore, marking a 120.69 percent increase from Rs.0.29 crore in September 2023. Additionally, the company’s EPS rose to Rs.0.28 in September 2024, compared to Rs.0.01 in the same month of 2023.
Products and Services Offered
Ritesh International offers a diverse range of products, including stearic acid used in rubber and PVC manufacturing, glycerin for cosmetics and pharmaceuticals, and fatty acids for soap and detergent production.
The company has also expanded into readymade garments. Committed to quality, Ritesh International ensures that all products undergo rigorous testing and meet strict standards through comprehensive quality control measures.
About the Company
Ritesh International Ltd is a leading Indian company involved in the production and sale of stearic acid, fatty acids, glycerin, and readymade garments. Headquartered in Ludhiana, Punjab, it operates manufacturing facilities in Akbarpura village, Ahmedgarh District, Punjab.
Written by – Siddesh S Raskar
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