The shares of leading manufacturers of Glycols gained 4% to the 52-week high price of ₹978.90 per share on Monday after the company board approved the proposal to expand its grain-based distillery and Biofuel ethanol production capacity.
At 12:30 p.m, India Glycols Ltd shares were trading at ₹916 .05 a share on the National Stock Exchange, down 2.63% from the previous close price, and the company has a market capitalization of ₹2,836 crores.
On 2nd February 2024, The company’s Board of Directors approved the enhancement of grain-based distillery capacity at the Gorakhpur Plant (Uttar Pradesh) and Bio-Fuel Ethanol capacity at the Gorakhpur and Kashipur (Uttarakhand) Plants.
Presently, the company operates a grain-based distillery plant with a capacity of 110 KLPD in Gorakhpur. In order to meet the growing demand for ethanol, the company’s board has proposed an expansion of the existing capacity to 180 KLPD, with an investment of ₹133 crores.
Additionally, the company’s Bio-Fuel Ethanol Plant in Gorakhpur currently has a capacity of 100 KLPD, and the Kashipur facility has a capacity of 140 KLPD. To address the increasing demand for ethanol, the board has approved capacity expansions of 90 KLPD at the Gorakhpur plant and 450 KLPD at the Kashipur plant, involving investments of ₹4 crores and ₹10 crores, respectively.
The company’s revenues have increased by 63 percent year on year from ₹ 554 crores in Q2FY23 to ₹ 904 crores in Q2FY24, while net profit has declined by 16 percent in the same period, from ₹ 50 crores to ₹42 crores.
India Glycols shares have gained 44% in the last six months and 47% in a year. India Glycols Ltd. is engaged in the manufacturing of green technology-based bulk, specialty & performance chemicals, and natural gums, spirits, industrial gases, sugar, and nutraceuticals.
In recent months, the company has won orders worth ₹ 1,164 crore to supply 165.5 million litres of ethanol to BPCL, Indian Oil, HPCL, Reliance Ind, and Nayara Energy.
In Q2FY24, company EBITDA stood at ₹106 Cr with an EBITDA growth of 43.4% YoY as well as EBITDA margin stood at 13.5%, up 257 bps.
In H1FY24, the company received 67% revenue from Bio-Based Specialties and
Performance Chemicals followed by 26% from Potable Spirits and 7% from the Ennature Biopharma business segment.
Written by Omkar Chitnis
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