Small-cap stock engaged in the manufacturing and supplying of spirits, performance chemicals, ethanol and many more jumped 8 percent in the day’s trade after it received an order worth Rs. 1,164 Crores for the supply of ethanol to Reliance Industries, BPCL, IOCL, and others.
At 10:15 a.m the shares of India Glycols Limited were trading at Rs. 755, up 7.5 percent from its previous day’s close price of Rs. 702.25 and its market capitalization is Rs. 2,338 Crores.
India Glycols Limited has won a contract worth Rs. 1,164 Crores under the Ethanol Blended Petrol Programme, to supply 16.55 Crore liters of Ethanol from its Grain-based Ethanol plants. The order is to be executed from November 1, 2023, to October 31, 2024.
Out of the said order, it is going to supply 12.80 Crore liters of Ethanol worth Rs. 896 Crores to Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Limited (IOCL) and Hindustan Petroleum Corporation Limited (HPCL) and the rest 3.75 Crore liters of ethanol worth Rs. 268 Crores to Reliance Industries Limited and Nayara Energy Limited.
In Q2FY24, it generated 66 percent of its revenue from Bio-based Specialities and Performance Chemicals(BSPC), 26 percent from Potable Spirits, and 8 percent from Ennature Biopharma.
The company’s revenue from operations declined 7.58 percent from Rs. 2,868.31 Crores in FY22 to Rs. 2,650.86 Crores in FY23, accompanied by profits of Rs. 339.85 Crores to Rs. 125.08 Crores.
It has reported a return on equity (ROE) of 7.64 percent and a return on capital employed (ROCE) of 9.21 percent, it is making decent returns on its equity and capital employed as its profitability has decreased this financial year.
India Glycols Limited is engaged in the manufacturing and supplying of green technology-based bulk, specialty, and performance chemicals and natural gums, sugar, industrial gases, spirits, and many more.
Written by: Bharath K.S
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