The shares of Specialty Chemicals maker soared approximately 16 percent to Rs 54.90 per share on Monday after the company received multiple orders totaling Rs 5.74 crores.
At 12:40 p.m., Syschem (India) Ltd shares were trading at Rs 52.90 a share on the Bombay Stock Exchange, up Rs 5.50 or 11.60 percent, with a market capitalization of Rs 151 crores.
According to the company’s exchange filings, Infinity Laboratories Private Limited placed an order with the company for the supply of cefadroxil of 5000 KGS worth Rs. 3.06 crores. In addition, the business received two orders totaling Rs 2.68 crores for the supply of Cefadroxil IP Comp of 3000 KGS and the Supply of Cefadroxil Monohydrate IP/BP Power Make of 1350 KGS, 25 Packings.
The company’s revenue for the June quarter increased by 200 percent to Rs 50.29 crore, up from Rs 16.36 crore in the same prior year’s quarter (Q1FY23). During the same year, the company’s net profit climbed by 130 percent, to Rs 1.68 crore from Rs 0.71 crore.
As per the latest shareholding pattern, the promoters hold 53.82 percent of the company, and retail investors hold 46.18 percent.
Profitability ratios for the company have risen, with return on equity at 20.23 percent and return on capital employed at 12.45 percent, while margins have also marginally improved, with net profit margin at 3.46 percent.
Syschem (India) Limited is engaged in the production of bulk drugs, intermediates, specialty chemicals, and contract manufacturing. The company also engaged in techno-commercial specialty chemicals manufacturing.
As penny stocks are illiquid, even a small number of orders might create a circuit limit. Individual investors must do considerable research before buying high-return penny stocks since they lack consistency in performance and offer high risk to retail investors.
Written by Omkar Chitnis
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