The shares of India’s leading producer and exporter of specialty chemical Additives rose 5 percent to a 52-week high price of Rs 154.45 a share after the company’s management is in talks to form a joint venture with a German-based company.
At 11:55 a.m., the shares of 20 Microns Ltd quoted at Rs 153, up 4.01 percent on the National Stock Exchange from the previous closing price.
According to the company’s exchange filing, 20 Microns Ltd management is in discussions with Sievert Baustoffe Auslandsbeteiligungen GmbH, a German-based company, about forming a joint venture company in India to produce construction chemicals and building materials. Furthermore, both sides are negotiating the amount to be invested in the Joint Venture Company.
The 20 Microns has received the Term Sheet in relation to said Joint Venture agreement which was executed on 04.10.2023.
The stock has gained 97 percent over the last six months and 57 percent in a year.
In the most recent fiscal year, the company showed profitability ratios of 14.24 percent return on equity and 21.75 percent return on capital employed.
The company’s revenue climbed by 2.7 percent year on year, from Rs 185 crore in Q1FY23 to Rs 190 crore in Q1FY24. Within the stated time range, the net profit increased by 15 percent from Rs 13 crore to Rs 15 crore.
According to the latest shareholding pattern, the company promoters hold a 44.83 percent stake, while retail investors hold a 54.45 percent stake.
20 Microns Ltd. manufactures micronized minerals such as calcium carbonate, calcined clay, and other specialty minerals. The company also processes and sells specialty chemicals including calcite and wax.
Written by Omkar Chitnis
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