On Tuesday, the micro-cap stock rose by 13 percent to its intraday high of Rs 557 per share from the previous close of Rs 491.10 after the company’s subsidiary secured the approval from Gujarat Pollution Control Board.
According to the filling of Diamines and Chemicals Ltd, DACL Fine Chem, a subsidiary of the company secured the Gujarat Pollution Control Board’s consent to establish a chemicals and lithium-based derivates plant in Gujarat for the approval period of 7 years.
Looking at the Diamines & Chemicals Ltd financials, the net revenue decreased by 26 percent year over year, from Rs 26.98 crore in Q2FY23 to Rs 19.92 crore in Q2FY24. Their revenue fell by 37 percent sequentially from Rs 31.70 crore in Q1FY24 to the current levels.
In addition, the company’s net profit fell by 67.6 percent year over year, from Rs 12.38 crores in Q2FY23 to Rs 4 crores in Q2FY24. Their profit declined from Rs 7.14 crore in Q1FY24 to the current levels on a sequential basis, a 44 percent increase.
Diamines and Chemicals Ltd is a micro-cap with a market capitalization of Rs 513 crores this company was listed on September 25, 2023. In the last month, the share has risen 10 percent.
The company has a low price-to-earnings ratio of 16, also it is a zero debt company with a return on equity ratio of 35 percent, a return on capital employed of 48 percent, and a net profit margin of 38 percent.
Diamines and Chemicals Ltd., founded in 1976 and beginning production in 1982, has been the sole manufacturer of ethylene amines in the Indian subcontinent for more than two decades. In addition, the company recently sold off all of its Wind Turbine assets.
Written by Sriram KV
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