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Shares of this microcap company clocked a 2 percent upper circuit in Thursday’s trading session after reporting an increase in net profits by 734 percent during Q4FY24. The shares have undergone a 50 percent decline over the past year. 

With a market capitalization of Rs. 293 crores, the shares of Integra Essentia Ltd started Thursday’s trading session on a higher note at Rs. 3.25, locking a 2 percent upper circuit compared to its previous close of Rs. 3.20 apiece. 

Such a positive movement in the share price was observed after the company announced their quarterly results. The revenue zoomed by 50 percent from Rs. 62.06 crores during the December quarter to Rs. 93.31 crores in the March quarter. In addition, the net profits magnified by 734 percent from Rs. 71 lakhs to Rs. 5.92 crores during the same period. 

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Comparing these metrics on a YoY basis, the revenue increased by 39 percent from Rs. 67.27 crores during Q4FY23 to Rs. 93.31 crores in Q4FY24. On the other hand, the net profits surged by 250 percent from Rs. 1.69 crores to Rs. 5.92 crores during the same timeframe. 

Integra Essentia’s shares, once soaring, are now trading at over a 50 percent discount from their 52-week high. This decline follows the company’s placement under the Enhanced Surveillance Measure (ESM) stage 2 Category due to a sudden share price surge. 

Additionally, the resignation of Mr Vishesh Gupta, the managing director and sole remaining promoter with a 20.81 percent stake, further contributed to the company’s woes. 

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 8.76 percent during FY 21-22 to 13.07 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 9.52 percent to 15.69 percent during the same timeframe. 

Moreover, the company’s agro division has a strong order book of Rs. 300 million which will be completed within the current year. With the existing order book, sourcing, and execution of the supplies plan it is achieving an overall growth of about 25 percent during the current fiscal, on a Year-on-Year basis. 

According to the latest shareholding pattern, the Promoters possess 20.81 percent of the company’s shares, while Domestic Institutional Investors (DIIs) hold 1.06 percent, entirely owned by LIC. Foreign Institutional Investors (FIIs) account for a 0.13 percent stake, with the remaining 77.99 percent held by Retail Investors. 

Headquartered in New Delhi, Integra Essentia Ltd was incorporated in 2007. The company is engaged in dealing and trading agricultural commodities, life necessities, items of basic human needs, other essential goods, and infrastructural products among others. 

Written By Vaibhav Patil 

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