The shares of Sigachi Industries appreciated to the tune of 30% in the past three days after it informed the exchanges that its board will hold a meeting on Tuesday, 10th January 2023 at 11:00 am to consider raising funds by issuing equity or convertible warrants on a preferential basis, subject to necessary approvals. Its shares reached a high of ₹ 359.50 apiece on Monday.
Sigachi Industries is an established manufacturer of pharma excipients, nutra and food ingredients. Establishes in the year 1989, it is one of the largest manufacturers of Microcrystalline Cellulose worldwide. It has three manufacturing units in Jhagadia, Dahej and Hyderabad, located in
It made a stellar debut on the bourses in November 2021. The company’s shares got listed at ₹ 575 space on the Bombay Stock Exchange (BSE)against an issue price of ₹ 163 per share, indicating a premium of 253%. It opened 250% higher on the National Stock Exchange (NSE) at ₹ 570 apiece.
The company has a market capitalization of ₹ 1,010 crores and is a small-cap company. It has an ideal return on equity of 24.87% and an ideal debt-to-equity ratio of 0.27. Its shares are trading at a price-to-earnings ratio of 15.07, which is significantly lower than the industry average of 30.07. This indicates that the stocks might be undervalued as compared to its peers.
Written by Simran Bafna
