The shares of this micro-cap firm which falls under the sector of chemicals saw its shares rise around 2 percent to an Intraday high of Rs 137 apiece from its previous closing price, after entering into a partnership with a UAE-based company.
Share price movement: The shares of Ducol Organics & Colours Limited which was recently listed on January 19, 2023, with an IPO price of Rs 78 per share generated a return of 22 percent over the past 6 months and closed at Rs 134.90 apiece on Friday. The market capitalization of Ducol Limited stood at Rs 193.67 crores.
What happened: Ducol Organics & Colours Limited has entered into a partnership with a UAE-based company named Altek International FZE in order to enhance its geographical presence in the Middle East, Africa, and Eastern Europe.
Established in 2009 and headquartered in Dubai, UAE, Altek International FZE is a leading global chemical distribution company. It serves markets across the Middle East, Africa, Europe, China, the Far East, and the Indian subcontinent.
Financials: The revenues of Ducol Organics & Colours Limited fell by 17.3 percent from Rs 90.73 crores in FY23 to Rs 75.41 crores in FY24 for the same period, The net profits of the company also fell by 27.4 percent from Rs 6.11 crores to Rs 4.43 crores.
Ratios: In terms of return ratios for the year 2024, it has reported a return on equity (ROE) of 7.06 percent and a return on capital employed (ROCE) of 9.54 percent. It has also reported a debt-to-equity ratio of 0.32 times for the same period.
IPO: During the year 2023, Ducol Limited has raised Rs 31.51 crores via an Initial Public offering of 40,40,000 equity shares with a face value of Rs 10 each.
Product Portfolio: Ducol Limited has a diversified product portfolio which includes Dutint, Duprint, Duplast, Dutex, Disperse, Dupren, and Dupralin.
Client base: The firm caters to various Marquee clients such as Asian Paints, Berger, Unilever, ITC Limited, Flint Group, Reitech Corporation, etc.
Future capex plans and Geographical expansion: Ducol Limited is planning to refurbish its existing Taloja Plant with the latest technology and infrastructure and is developing two new units at its Mahad plant which has already begun and is expected to be completed by the end of 2025.
Production Capacity Increment plans: Over the next five years, the company aims to expand its production capacity as follows: increase wet dispersions from 8,000 Metric ton (MT) to 10,000 MT, boost dry dispersions from 18,000 MT to 20,000 MT, and raise masterbatches from 8,000 MT to 10,000 MT.
Indian Paint Market potential: From 2023 to 2028, the Indian paint market is anticipated to expand at a compound annual growth rate (CAGR) of 10 percent, with its value expected to hit Rs 10,000 crores by 2028.
Shareholding Pattern: As of March 2024’s shareholding pattern 57.38 percent of the stakes of the company are held by the promoters and the remaining 42.62 percent are held by the public.
About the Company: Incorporated in 1924 and headquartered in Raigad, Ducol Organics & Colours Limited offers a range of pigment dispersions for various industries. The Company offers a range of pigment dispersions and color solutions for various industries, such as paints, inks, textiles, paper, rubber, plastics, and fast-moving consumer goods (FMCG).
Written By Zahal
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