The share price of this company, which specializes in manufacturing lead, alloys, and plastic additives, has surged an impressive 418 percent since the investment by renowned investor Dolly Khanna, boosting her investment value by Rs.25 crore in two years.
Share Price Movement
The share price of Pondy Oxides and Chemicals Limited reached a 52-week high of Rs.1,772.75 per share on Monday, August 19, 2024, a significant rise from Rs.342.18 per share when Dolly Khanna purchased a 1.31 percent stake (1,70,974 equity shares) during the March quarter of FY 2022.
Over this period, her investment value rose from Rs.5.85 crore to Rs.30.31 crore, gaining approximately Rs.25 crore. The share price is currently trading at Rs1,714.45 per share.
Rationale for the Rise
The share price of Pondy Oxides and Chemicals Limited has soared by 418 percent since Dolly Khanna’s investment in the company. This remarkable surge is largely driven by the company’s robust financial performance, underpinned by strong demand for its lead and lead alloy products, particularly within the battery manufacturing sector.
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With about 60 percent of its production exported to international markets, including South Korea and Japan, the company has capitalized on the growing global demand for lead products. This increased demand has significantly boosted both the company’s revenue and its stock price.
Investor interest and positive market sentiment, sparked by the involvement of the ace investor and the company’s recent performance, have further fueled the stock’s meteoric rise, positioning it as a standout performer in the chemical sector.
Financial Performance
Pondy Oxides and Chemicals has demonstrated impressive financial growth in both the past quarter and over the year.
In Q1 FY25, the company reported a 36.83 percent increase in revenue to Rs.444.94 crore, up from Rs.325.18 crore in the same quarter the previous year. On a quarter-over-quarter basis, revenue rose by 23 percent from Rs.362.55 crore in Q4 FY24.
The company also saw a significant 225 percent rise in net profit, reaching Rs.13 crore in Q1 FY25, compared to Rs.4.10 crore in Q1 FY24. Net profit also increased by 8.5 percent from Rs.11.95 crore in Q4 FY24.
Future Potential
Pondy Oxides and Chemicals plans to increase its lead production capacity by an additional 72,000 metric tonnes per annum. The company is also expanding its capabilities in existing
sectors while branching into new areas like lithium-ion technology and forward integration. POCL is set to invest Rs.100 crore to fund these upcoming projects in FY25.
About the company
Pondy Oxides and Chemicals Ltd. (POCL) is recognized as one of India’s leading manufacturers of lead alloys. It operates across multiple sectors, including metals, metallic oxides, PVC stabilizers, and lead-acid batteries.
The company’s core activities involve converting various forms of lead scrap into lead metal and alloys. The company is headquartered in Chennai, Tamil Nadu.
Written by – Siddesh S Raskar
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