This Microcap stock which deals in the business of specializing in providing co-packing services for MNCs hit a 5 percent upper circuit intraday trade after the company received machinery from Tata Consumer Products worth Rs. 8.9 crores.
Price Action
With a market capitalization of Rs. 322.35 Crores, the shares of Arunjyoti Bio Ventures Limited were up by 5 percent in the day’s trade. The stock touched a day’s high of Rs. 173.75 per share which was 5 percent higher from the previous closing price. The stock reiterated from the day’s high and was trading at Rs. 172.95 which is 4.50 percent higher than the previous closing price of Rs. 165.50 apiece. The stock has delivered a multi-bagger return of 370 percent in the past year and has outperformed the Nifty Index.
What Happened
The stock rose after the company received machinery from Tata Consumer Products Limited worth Rs. 8.9 crores. The machinery is being installed in ABVL’s two plants which are located in Andhra Pradesh and Telangana.
This addition helps to increase the existing production capacity which is dedicated for Tata Consumer’s use. These plants are used for TCPL’s Ready to Drink products. This arrangement helps the company to improve supply chain and maintain quality control standards to support TCPl’s demand.
About the Company
Arunjyoti Bio Ventures Ltd was incorporated in 1986. They specialize in high-quality co-packing services for multinational corporations in the beverage industry. They focus on non-carbonated drinks, juices, and energy beverages, focusing on quality and brand integrity. Their business model revolves around leveraging state-of-the-art facilities and a skilled workforce to efficiently manage large-scale production runs, ensuring timely delivery while adhering to client specifications. By prioritizing excellence and operational efficiency, Arunjyoti aims to strengthen partnerships with its MNC clients and expand its market presence in the beverage sector.
Financials & Ratios
Its Revenue from operations grew by 102 percent year on year from Rs. 3.14 Crores in Q2FY24 to Rs. 6.35 Crores in Q2FY25, accompanied by losses of Rs. 1.37 Crores to Rs.0.41 Crores.
The company has net profit margin of -1.71 percent. They have a reported current ratio of 2.72.
Shareholding Pattern
As of September 2024, the shareholding pattern with promoters stake holding a share of 61.79 percent in Arunjyoti Bio Ventures, and public holdings standing at 23.90 percent.
Written by Santhosh S
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