The share price of this company, which specializes in manufacturing lead, alloys, and plastic additives, hit a 5 percent upper price band after reporting a remarkable 168 percent YoY increase in net profits and strong revenue growth in its recent quarterly results.
Share Price Movement
The share price of Pondy Oxides and Chemicals Limited hit a 5 percent upper circuit to Rs.1,117.20 per share on Thursday, a significant rise from its previous close of Rs.1,064.00 per share. Over the past 6 months, the share has delivered returns of over 250 percent.
What Happened
Such a bullish movement in the stock price was an outcome of increase in revenue and net profits of the company in the recent quarter. According to its recent filing, in the quarter ending September 2024, Pondy Oxides & Chemicals reported a 46 percent increase in revenue to Rs.57,910.86 crore compared to Rs.39,682.82 crore in Q2 FY24. Furthermore, on a quarter-over-quarter basis, the company saw an increase of 30 percent from Rs.44,493.80 crore in Q1 FY25.
In the same period, the company has reported a significant increase in net profit of 168 percent to Rs.1,525.68 crore in Q2 FY25, up from Rs.568.76 crore Q2 FY24 and 18 percent from Rs.1,295.75 crores in Q1 FY2025.
In terms of return ratios, return on capital employed (ROCE) is currently at 16.5 percent, while return on equity (ROE) is at 13.3 percent. The company has a strong current ratio of 2.03 and a low debt-to-equity ratio of 0.36.
Capacity Expansion
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.
International Formulations
Pondy Oxides And Chemicals Ltd. exports 60 percent of their manufactured products. They have a good presence in the international markets, exporting and importing goods from countries including Tanzania ,Malaysia and a host of other countries.
Shareholding Pattern
As of the August 2024 shareholding pattern, promoters hold a 43.64 percent stake in Pondy Oxides and Chemicals Ltd. Foreign Institutional Investors (FII) hold 0.53 percent, Domestic Institutional Investors (DII) hold 0.14 percent, and retail investors hold 55.69 percent. Notably, ace investor Dolly Khanna holds a 1.31 percent stake in the company.
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 stabilisers, 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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