Shares of this micro-cap stock associated with the ‘gas’ industry jumped approximately 11 percent in Wednesday’s trading session after the company successfully bagged an order worth Rs 733 crores for the supply of Bio Diesel.
With a market capitalization of Rs 1,196.55 crores, the stocks of Kotyark Industries Limited opened their trading hour on Wednesday at Rs 1,350 and currently trade at Rs 1,369.95, gaining around 11 percent as compared to the previous closing levels of Rs 1,231.85 apiece.
Such bullish stock price behavior is observed after the company, through a regulatory filing with the National Stock Exchange (NSE), intimated that Kotyark Industries Limited, along with Yamuna Bio Energy Private Limited, an amalgamating company, received an allocation sheet against the tenders for procurement of Bio Diesel worth Rs 733 crores.
The above order pertains to a cumulative procurement quantity of 90,135 kilolitres during the period between December 2023 to September 2024. The order is received from various Oil Manufacturing Companies (OMCs), viz, Indian Oil Corporation Limited(IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL).
“Over the recent years and more so over recent quarters, Indian OMCs have shown increasing adoption of Biodiesel, underpinned by the Government of India’s biodiesel blending targets.”, commented Mr. Gaurang Shah, Chairman and Managing Director, Kotyark Industries.
Coming onto the financials, the company, on a standalone basis, reported an opposing movement as far as the operating revenues and net profits are concerned.
The former, on one end, moved down from Rs 156 crores during FY21-22 to Rs 113 crores during FY22-23, and the latter, during the same period, increased from Rs 8 crores to Rs 11 crores due to efficient cost management by the company.
Incorporated in 2016, Kotyark Industries Limited is engaged in the business of developing biofuels in India. The company’s products are applied in biodegradable plastics, paints & coatings, pharmaceuticals, cosmetics, etc, and the same is offered to various entities, some of which include oil marketing companies, mining companies, and oil marketing companies.
Written by Amit Madnani
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