The shares of this small-cap multibagger stock gained 8.2 percent to Rs 55.85 on Wednesday which is 52 week high after the company announced strong Q2 results.
Sigachi Industries Limited reported that net revenue increased by 20% year on year from Rs 82.4 crores in Q2FY23 to Rs 99.1 crores in Q2FY24. On a quarter-on-quarter basis, their revenue increased 17 percent from Rs 84.7 crore in Q1FY24 to current levels.
In addition, net profit rose 11.8 percent year on year, from Rs 13.5 crores in Q2FY23 to Rs 15.1 crores in Q2FY24. On a sequential basis, their net profit rose by 40 percent from Rs 10.8 crores in Q1FY24 to current levels.
Sigachi Industries Ltd is a small-cap company with a Market capitalization of Rs 1,663 crores. It also has a return on equity (ROE) of 17 percent and a return on capital employed (ROCE) of 20 percent.
Also, the company has a low debt-to-equity ratio of 0.15 and a good current ratio of 2.3. With a low price-to-earnings ratio of 40.11 compared to its industry average price-to-earnings ratio.
The majority stake in Sigachi Industries Ltd is held by promoters at 46 percent, followed by foreign institutional investors at 2.46 percent, with the remaining portion belonging to the public.
The share price of Sigachi Industries Ltd has increased by 120 percent in the last six months and by 97 percent year to date. For instance, if you invested Rs 1 lakh six months ago, the current value would be Rs 2.2 lakhs.
Sigachi is the industry leader in Pharma Excipients, Nutra, and Food Ingredients. Sigachi was founded in 1989 and has quickly established itself as one of the world’s largest manufacturers of Microcrystalline Cellulose. With three Multi Locational Facilities in Telangana and Gujarat, Sigachi has ensured supply chain reliability for its customers all over the world.
Written by Sriram KV
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