The shares of this microcap company locked 5 percent upper circuit after reporting an increase in net profits by 4700 percent YoY. In just six months, the stock has delivered a multibagger return of 106 percent to its shareholders.
Price Movement:
With a market capitalization of Rs. 945 crores, the shares of Lotus Chocolate Company Ltd started Thursday’s trading session on a higher note at Rs. 735.75, clocking a 5 percent upper circuit compared to its previous close of Rs. 700.75 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company declared its Q1FY25. Quarterly, the revenue surged by around 115 percent from Rs. 65.82 crores during the March quarter to Rs. 141.31 crores in the June quarter. In addition, the net profits increased by 697 percent from Rs. 1.18 crores to Rs. 9.40 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue zoomed by 337 percent from Rs. 32.31 crores during Q1FY24 to Rs. 141.31 crores in Q1FY25. On the other hand, the net profits magnified by 4,700 percent from Rs. 19.60 lakhs to Rs. 9.40 crores during the same timeframe.
Also read
History:
In 2023, Reliance Consumer Products Limited (RCPL), the FMCG arm of Reliance Retail Ventures Limited (RRVL), completed the acquisition of a 51 percent controlling stake in Lotus Chocolate Company Limited for an aggregate consideration of Rs 74 crores. Post-acquisition, the stock has delivered more than 400 percent to its shareholders.
The acquisition is part of Reliance Retail’s strategy to build its FMCG business, which will see RCPL compete with players like Britannia Industries and Nestle India.
Shareholding Pattern:
According to the latest shareholding patternPromoters control 742.07 percent of the shares (including a 51 percent stake held by Reliance), with Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) each holding 0.01 percent, while Retail Investors hold the remaining 27.91 percent.
Company Profile:
Lotus Chocolate Company is a leading manufacturer of fine chocolates, cocoa products, and cocoa derivatives, supplying to chocolate makers and users worldwide, from local bakeries to multinational companies.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
