During Tuesday’s trading session, the shares of a company operating in the Specialty Paper segment moved up by 13.2 percent to Rs. 121.55 on BSE, after reporting Q2 FY25 results with a rise in net profit by 9.4 percent QoQ and nearly 14 percent YoY.
With a market cap of Rs. 1,098 crores, at 12:19 p.m., the shares of Pudumjee Paper Products Limited were trading in the green at Rs. 115.65, up by nearly 7.7 percent, compared to its previous closing price of Rs. 107.35.
What’s the news:
The fluctuations in the share prices were observed after Pudumjee Paper Products Limited announced the financial results for Q2 FY25, through the latest filings with the stock exchanges on Monday post-market hours.
For Q2 FY25, Pudumjee Paper reported consolidated revenue from operations of Rs. 222 crores, reflecting a significant growth of around 9.4 percent QoQ from Rs. 203 crores in Q1 FY25, as well as an increase of about 14 percent YoY from Rs. 195 crores in Q2 FY24.
The company’s net profit for Q2 FY25 grew to Rs. 30 crores, representing a significant increase of around 7.2 percent QoQ from Rs. 28 crores in Q1 FY25, as well as a year-on-year increase of nearly 66.7 percent from Rs. 18 crores in Q2 FY24.
Half-yearly Performance:
Pudumjee Paper reported a remarkable financial performance for the half year ending 30th September 2024, achieving a 99 percent YoY increase in Profit Before Tax (PBT), reaching Rs. 77 crores. This growth was driven by reduced raw material costs, improved net sales realization, and the production of value-added products.
On a year-on-year basis, the company’s revenue rose by 13 percent to Rs. 425.3 crores, while EBITDA surged by 77 percent to Rs. 85 crores.
Additionally, the Return on Capital Employed (RoCE) improved significantly to 27 percent, up from 17 percent in the same period last year.
The cash and cash equivalents as of 30th September 2024, totalled Rs. 229.8 crores, a substantial increase from Rs. 126.6 crores reported in the previous corresponding period.
Additional Info:
On 18th September, Pudumjee Paper Products secured a contract to establish a 15.4 MW Solar Power Project in Maharashtra. This initiative aims to enhance environmental sustainability by increasing the share of green energy to about 45 percent of its current requirements, while also reducing overall energy costs. The plant is anticipated to become operational in FY26.
The company remains committed to producing a range of biodegradable and compostable specialty papers with barrier properties, which serve as key materials for sustainable packaging solutions across various sectors, including food, pharmaceuticals, hospital supplies, hygiene products, and confectionery. These areas are experiencing significant growth in demand.
Stock Performance:
The stock has delivered multibagger returns of nearly 149 percent in one year, and around 55.7 percent of positive returns in the last six months. So far in 2024, the shares of Pudumjee Paper Products have given multibagger returns of about 125 percent.
About the company:
Incorporated in 2015, Pudumjee Paper Products Limited primarily belongs to Paper Industry and operates in the Specialty Paper segment for wrapping and food-grade packaging paper, household and sanitary paper, etc.
Written by Shivani Singh
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