Shares of this microcap company clocked 5 percent upper circuit on Wednesday’s trading session after reporting an increase in net profits by 149 percent YoY. The shares have delivered more than 35 percent returns to its investors in one year.
With a market capitalization of Rs. 52.9 crores, the shares of Axel Polymers Ltd started Wednesday’s trading session on a higher note at Rs. 60 compared to its previous close of Rs. 59.09. During the trading session, the shares clocked a 5 percent upper circuit at Rs. 62.04 apiece.
Such a bullish movement in the share price was observed after the company announced their quarterly results. Looking at the financial statements, the revenue increased by 25 percent from Rs. 30.92 crores during the September quarter to Rs. 38.63 crores in the December quarter. On the other hand, the net profits improved by 35 percent from Rs. 49.95 lakhs to Rs. 67.21 lakhs during the same period.
Comparing these metrics on a YoY basis, the revenue zoomed by 118 percent from Rs. 17.74 crores during Q3FY23 to Rs. 38.63 crores in Q3FY24. In addition, the net profits magnified by 149 percent from Rs. 27 lakhs to Rs. 67.21 lakhs during the same timeframe.
The company has been expanding its product portfolio and has been focusing on research and development to introduce new products and technologies. Moreover, the launch of several infrastructure development initiatives such as “Make in India” and “Smart Cities Mission” has created additional market opportunities for the polymer industry, which is expected to benefit Axel Polymers.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 7.43 percent during FY 21-22 to 8.75 percent in FY 22-23, and, the return on capital employed (RoCE) increased marginally from 23.85 percent to 23.95 percent during the same timeframe. Furthermore, the net profit margin increased from 1.25 percent during FY21-22 to 1.39 percent during FY22-23.
According to the latest shareholding pattern, the Promotores hold 61.72 percent of shares, Retail Investors have 38.04 percent of stakes and the remaining 0.24 percent of shares are with the DIIs.
Headquartered in Mumbai, Axel Polymers was incorporated in 1992. The company is principally engaged in the business of manufacturing compounds, blends, alloys of engineering polymers, and speciality and commodity polymers.
The company is the largest manufacturer of Engineering Thermoplastic Compounds in India, catering to multinationals and domestic corporates.
Written By Vaibhav Patil
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