The shares of the integrated polyol manufacturer gained up to 16 percent after the company had appealed for an anti-dumping probe.
With a market capitalization of Rs 1,221.19 crore, the shares of Manali Petrochemicals Ltd closed at Rs 71.55 per share, increasing around 15 percent as compared to the previous closing of Rs 62.29 apiece.
According to Business standards, Manali Petrochemicals Ltd has requested an anti-dumping investigation after which the Commerce and Industry Ministry’s Directorate General of Trade Remedies (DGTR) proposed a decisive anti-dumping penalty on flexible slabstock polyol, a polymer, imported from China and Thailand.
Moreover, the company is the sole producer of flexible slabstock polyol in India which is used in mattresses, pillows, bolsters, transport seating, and packaging.
Furthermore, the DGTR has proposed a definite anti-dumping tax of $534 per tonne on the import of flexible slabstock polyol made by Wanhua Chemical Group (China). For other Chinese manufacturers, the suggested anti-dumping duty was $608 per tonne.
Furthermore, in the instance of Thailand, the DGTR proposed an anti-dumping tax of $470 per tonne on imports from GC Polyols Company Ltd and $480 per tonne on other producers.
Looking at the company’s financials, Manali Petrochemicals Ltd’s sales decreased by 13% from Rs 237.70 crore in Q3FY23 to Rs 204.75 crore in Q3FY24. During the same time frame, net profit decreased by 6% from Rs 3.15 crore to Rs 2.94 crore.
Manali Petrochemicals Ltd. reported return ratios in the recent financial year with a return on equity (ROE) of 4.89 percent and a return on capital employed (ROCE) of 7.54 percent.
In the company’s recent shareholding pattern, the Promoters of the company own 44.87 percent while Retail shareholders own a 54.26 percent stake in the company, and Foreign Institutional Investors own a 0.86 percent stake.
Manali Petrochemicals Limited manufactures and sells industrial raw materials such as propylene oxide (PO), propylene glycol (PG), and polyols (PY). The firm, based in Chennai, is the sole local maker of propylene glycol.
Written by:- Abhishek Singh
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