The shares of this microcap company surged by 8 percent in Wednesday’s trading session after reporting an increase in net profits by 120 percent QoQ. In just six months, the stock has delivered more than a 40 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 258 crores, the shares of Kanchi Karpooram Ltd started Wednesday’s trading session on a higher note at Rs. 601.40 compared to its previous close of Rs. 561.40.
During the trading session, the shares hit a high of Rs. 619.95, gaining around 8 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 604 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company announced their Q1FY25 results. Quarterly, the revenue increased by 15 percent from Rs. 31.06 crores during the March quarter to Rs. 35.72 crores in the June quarter. In addition, the net profits magnified by 142 percent from Rs. 2.14 crores to Rs. 5.18 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue decreased by around 16 percent from Rs. 42.36 crores during Q1FY24 to Rs. 35.72 crores in Q1FY25. On the other hand, the net profits showcased a transition from a net loss of Rs. 1.14 crores to Rs. 5.18 crores during the same timeframe.
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Product Profile:
The company specialises in camphor and its derivatives, as well as various other chemical products. It has expanded its product line to cater to multiple sectors, reflecting its evolution from a camphor-only manufacturer to a comprehensive chemical supplier.
Moreover, the company exports to international markets, including European trading houses, and serves major manufacturers in India, particularly in the paint and tyre industries.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters maintain ownership of 49.83 percent. The remaining 50.18 percent of shares are held by Retail Investors.
Company Profile:
Incorporated in 1992, Kanchi Karpooram Ltd manufactures Camphor and Allied Products and trades in Agro Products. The company’s main products include Camphor, its derivatives, Gum rosin, Value Added Resins and Fortified Rosin.
Written By Vaibhav Patil
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