The shares of this small-cap stock associated with the ‘Refractory & Electrode’ industry fell approximately 5 percent in Tuesday’s trading session after the company reported underperforming numbers during Q4FY24, especially the bottom-line numbers.
With a market capitalization of Rs 12,039.04 crores, the stocks of Graphite India Limited closed their trading session on Tuesday at Rs 616.20, slipping around 5 percent compared to the previous closing levels of Rs 648.60 apiece.
Such a sudden drop in the share price was witnessed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the financial results for Q4FY24, viz, for the quarter ended March 2024.
On a sequential basis, the company’s prime business indicators such as operating revenues and after-tax profits showed movements in opposing directions with the former, on one end, increasing from Rs 690 crores during Q3FY24 to Rs 720 crores during Q4FY24, and the latter, on the other end, reducing marginally from Rs 17 crores to Rs 16 crores.
Comparing Q4FY23 v/s Q4FY24, the metrics mentioned above reported negative movements with the operating revenues dipping from Rs 815 crores to Rs 720 crores, and the latter, keeping the timeframe the same, moving down from Rs 29 crores to Rs 16 crores exhibiting a dip of approximately 45 percent.
In addition to the above, the company also reported underperforming return ratios with the return on equity (RoE) reducing from 10.20 percent during FY22 to 4.01 percent during FY23, and the return on capital employed (RoCE), keeping the time horizon the same, slipping from 14.04 percent to 7.62 percent.
Despite the negative performance, the company’s stock has proven to deliver decent returns to its shareholders with around 35 percent returns in the last six months and nearly 90 percent returns in the past year.
Graphite India Limited is an India-based company engaged in the manufacturing process of industrial products. The company manufactures graphite electrodes and other various graphite-based products. It is also engaged in manufacturing other products including graphite equipment & spares, reinforced plastic pipes, and others.
Written by Amit Madnani
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