The shares of the leading specialty chemicals manufacturer gained up to 8% after the company’s subsidiary has entered into an agreement with a leading agrochemical company.
Jubilant Ingrevia Ltd has a market capitalization of Rs 12,893.81 crore, the shares were trading at Rs 809.55 per share, increasing around 4.43 percent as compared to the previous closing price of Rs 775.20 apiece.
Reason for rise:-
The company shares have seen positive movement after Jubilant Agro Sciences Limited (‘JASL’), a wholly-owned subsidiary of the Company, entered into an agreement with a leading Agrochemical Company (‘Customer’) to produce an Agro Intermediate for one of the key Agro actives of the Customer.
Moreover, the synergistic partnership in which JASL uses its manufacturing ability in conjunction with the technical know-how of essential Agro intermediates and Agro actives, as well as its worldwide distribution network and brand image in the agricultural domain.
Financial Growth:-
Looking forward to the company’s financial performance, revenue has fallen by 5 percent from Rs 1,075 crore in Q1FY24 to Rs 1,024 crore in Q1FY25, however during the same time frame, net profit plummeted by 15 percent from Rs 58 crore to 49 crore.
Ace investor & footprint:-
Ace investor Rekha Jhunjhunwala holds 48,74,500 which is equivalent to 3.06 percent of the company as of June 2024.
The organization services approximately 1,600 clients in more than 50 countries worldwide. Furthermore, it has established a capex expenditure of ₹2,000 Crore until fiscal year 2025.
Jubilant Ingrevia Ltd’s shares have increased by 68.75% over the previous year and a 76 percent zoom in the recent six months.
Shareholding Pattern:-
According to the latest shareholding pattern, the Promoters hold a 51.47 percent stake in the company, Foreign Institutional Investors (FII) hold a 6.55 percent stake, while Retail Investors hold 27.10 percent in Oriental Rail Infra.
Ratio analysis:-
The company’s critical ratios show that the return on equity decreased from 11.53 percent in FY22-23 to 6.68 percent in FY23-24, while the return on capital employed zoomed from 14.88 percent to 9.29 percent. The net profit margin (NPM) for fiscal year 23-24 is 4.42 percent.
Company profile:-
Jubilant Ingrevia Limited is an India-based integrated provider of life sciences products and solutions. The Company’s segments include Speciality Chemicals, Nutrition and Health Solutions, and Chemical Intermediates.
Written by:- Abhishek Singh
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