The shares of Micro-Cap company, specializing in the production and supply of high-quality biodiesel from various raw materials such as used cooking oil, animal fat, and vegetable oil, jumped upto 5 percent upon receiving Letters of Intent (LOIs) for the supply of biodiesel under a tender opened by Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited.
Price action
With a market capitalization of Rs. 168.10 Crores on Monday, the shares of Rajputana Biodiesel Limited jumped upto 4.55 percent, making a high of Rs. 242.00 compared to its previous closing price of Rs. 231.50.
What Happened
Rajputana Biodiesel Limited and its subsidiary, Nirvaanraj Energy Private Limited, have received Letters of Intent (LOIs) for the supply of biodiesel under a tender opened by Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited for a total quantity of 2,00,000 KL of biodiesel, scheduled for delivery between April 2025 and July 2025.
In response to this tender, Rajputana Biodiesel Limited has received Letters of Intent (LOIs) from Indian Oil Corporation Limited (IOCL) on April 17, 2025, for the supply of 2,119 KL of biodiesel, with an estimated order value of Rs. 18 Crores (approximately), and an additional LOI for 333 KL, with an estimated order value of Rs. 2.80 Crores.
Furthermore, Rajputana Biodiesel Limited’s subsidiary, Nirvaanraj Energy Private Limited, has been awarded 39 KL of the total supply, valued at approximately Rs. 33 Lakhs, and the remaining bid volumes are expected to be finalized soon.
About the Company
Rajputana Biodiesel Ltd is a biodiesel production company based in India that produces biodiesel from various raw materials. The company was established to promote renewable energy and reduce dependence on fossil fuels. Rajputana Biodiesel Ltd. uses a state-of-the-art production process that involves the conversion of raw materials into biodiesel through a chemical process called transesterification.
Products offered
Their primary product is biodiesel, derived from non-edible vegetable oils, recycled fats, and methanol. The company also manufactures glycerin and fatty acids, which are by-products of the biodiesel production process. These by-products have various industrial applications, including use in animal feed, energy production, pharmaceuticals, chemicals, textiles, and the paper industry.
Financials
The company’s revenue rose by 68 percent from Rs. 26.49 crore to Rs. 44.53 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs. 1.99 crores to Rs. 4.86 crores during the same period.
Key Insights
The company has a strong financial outlook with a P/E ratio of 32.58, which is lower than the industry average of 41.45, indicating reasonable valuation. It has delivered a healthy average ROE of 40.30 percent and ROCE of 18.73 percent over the last three years, and the Promoter holding remains strong at over 65 percent.
Written by Sridhar J
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