Shares of this small-cap stock associated with the ‘Electrodes & Refractories’ industry jumped approximately 8 percent in Tuesday’s trading session after the company announced robust results for Q1FY24, i.e., for the quarter ending March 2024.
With a market capitalization of Rs 9,512.98 crores, the stocks of Vesuvius India Limited started their trading session on Tuesday at Rs 4,602 and currently trade at Rs 4,680, gaining around 8 percent compared to the previous closing levels of Rs 4,356.75 apiece.
Such a spike in the share prices was observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the financial results for Q1FY24, i.e., for the quarter ending March 2024.
Sequentially, the company, following the calendar year, reported an increase in its prime indicators of business such as total income as well as after-tax profits. The former rose from Rs 417 crores during Q4FY23 to Rs 453 crores during Q1FY24, and the latter, keeping the timeframe the same, shifted up from Rs 57 crores to Rs 69 crores.
Comparing Q1FY23 v/s Q1FY24, the metrics discussed above showed decent positive movements with the total income numbers increasing from Rs 368 crores to Rs 453 crores, and the bottom-line numbers, on the other end, rose by approximately 61 percent from Rs 43 crores to Rs 69 crores.
Historically, the company’s ratio analysis portrays its return ratios, viz, the return on equity (RoE) as well as the return on capital employed (RoCE), being reported at decent numbers. During FY23, the company reported RoE at 17.84 percent and the RoCE at 23.22 percent.
As per the latest shareholding pattern data available for the March’24 quarter, the company’s Promoters hold a 55.57 percent stake, and the Foreign Institutional Investors (FIIs), recently reducing their stake, currently hold around 1.57 percent stake in the company.
Founded in 1991, Vesuvius India Limited, a subsidiary of Vesuvius Group Limited based in the United Kingdom, is engaged in the business of manufacturing as well as selling refractory products in India.
The company’s product offerings include monoblock stoppers, sub-entry nozzles, tundish nozzles, purge plugs, insulating and conventional castables, precast shapes, and crucibles among others.
Written by Amit Madnani
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