Shares of this small-cap stock associated with the ‘Ethanol’ sector jumped up to 3.30 percent in Wednesday’s trading session after the company provided updates on the expansion of capacity of its distillery based in Kashipur, Uttarakhand.
With a market capitalization of Rs 2,324.28 crores, the stocks of India Glycols Limited started their trading session on Wednesday at Rs 779.95 and closed at Rs 750.70. The company’s scrip witnessed an intra-day high price of Rs 779.95 representing a gain of around 3.30 percent compared to the previous close of Rs 755.15 apiece.
In a recent regulatory filing with the Bombay Stock Exchange (BSE), the company intimated about the enhancement of capacity of its grain-based distillery based in Kashipur, Uttarakhand.
The company successfully added a further capacity of 100 Kilo Litre Per Day (KLPD) to the existing plant and the revised capacity of the grain-based distillery plant stands at 400 KLPD and is fully commissioned.
During the recent financial quarters, the company’s basic business parameters such as operating revenues and after-tax profits faced some reduction in numbers.
The former reduced marginally from Rs 1,893.64 crores during Q1FY23-24 to Rs 1,869.88 crores during Q2FY23-24, and, the latter, keeping the timeframe the same, shifted down from Rs 45.12 crores to Rs 37.14 crores.
Following the pattern, the company’s profitability ratios, due to reduction in numbers, showed a dip with the return on equity (RoE) falling from 22.29 percent during FY21-22 to 7.64 percent during FY22-23 and the return on capital employed (RoCE) moving down from 17.28 percent to 9.21 percent keeping the timeframe the same.
India Glycols Limited is engaged in the business of manufacturing as well as marketing of chemicals. The company offers specialty chemicals, ethyl alcohol, natural gum, and industrial gases among others. The demand for their products comes from the pharmaceutical, nutraceutical industry, food, textile, automobile, and potable segments.
Written by Amit Madnani
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