Shares of this chemical stock under the ‘small-cap’ category zoomed around 7 percent in Monday’s trading session after the company plans to set up a Green Hydrogen Facility.
With a market capitalization of Rs 2,343.35 crores, the stocks of Sadhana Nitro Chem Limited (SNCL) started their trading session on Monday at Rs 93.20 and currently trades at Rs 94.85, gaining approximately 7 percent as compared to the previous closing levels of Rs 88.76 apiece.
Such stock price movements were observed today after the company, via a regulatory filing with the Bombay Stock Exchange today, intimated that it plans to foray into green energy for captive usage. Accordingly, the company will set up a 15‐20 MW Green Hydrogen Facility.
The company’s Board, for the above purpose, has approved a rights issue and the shares are being offered at Rs 121 per equity share. The company will look to raise up to Rs 49.95 crores. The green energy expansion offers the company a strategic advantage of backward integration along with control over its energy supply.
“This facility, boasting a capacity of 15MW-20 MW, marks a significant milestone in our journey towards sustainability and innovation within the realm of intermediate specialty chemicals manufacturing.”, commented Mr. Abhishek Javeri, MD, Sadhana Nitro Chem Limited.
In October 2023, the company shifted to ‘Para Aminophenol’ (PAP) that is used in paracetamol and other prescription drugs. For PAP, SNCL has been awarded the ‘Production Linked Incentive’ (PLI) scheme for a capacity of 36,000 tonnes per annum.
During the recent financial quarters, the company has marginally increased its operating revenues from Rs 39.41 crores during Q1FY23-24 to Rs 42.01 crores during Q2FY23-24. In congruence, the net profits of the company, during the same time horizon, rose drastically from Rs 5 lakhs to Rs 2.57 crores.
Sadhana Nitro Chem Limited is an India-based company that operates in the chemical business. The company is engaged in the business of manufacturing intermediates, performance chemicals, heavy organic chemicals, etc. Generating the majority of revenue from the former segment in the list, the company executes sales within and outside India.
Written by Amit Madnani
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