Shares of this smallcap company jumped around 6 percent in Friday’s trading session after mutual funds like Motilal Oswal, Bandhan, and Nippon India bought stakes in the company. In one year, the shares have delivered more than 80 percent returns to its shareholders.
Price Movement:
With a market capitalization of Rs. 3,569 crores, the shares of Styrenix Performance Materials Ltd started Friday’s trading session on a higher note at Rs. 2,018 compared to its previous close of Rs. 1,957.80. During the trading session, the shares hit a high of Rs. 2,090, gaining around 5 percent and are currently trading at Rs. 2,080 apiece.
What Happened:
According to the Bulk deals, The promoter of Styrenix Performance Materials, Shiva Performance Materials sold around 29 lakh shares or equivalent to a 16.5 percent stake in the company at an average price of Rs. 1,862.20, garnering Rs. 540 crores via an open market transaction.
After the share sale, the promoter Shiva Performance Materials’ shareholding in Styrenix Performance Materials declined from 62.73 percent to 46.24 percent.
Prominent mutual funds including Motilal Oswal Mutual Fund, Bandhan Mutual Fund, and Nippon India Mutual Fund purchased sold stakes, acquiring 1.28 percent, 0.76 percent, and 1.42 percent stakes respectively, at an average price of Rs. 1,860 per share.
Financials:
Looking at the company’s financial performance, the revenue increased by 24 percent from Rs. 485 crores during the December quarter to Rs. 599 crores in the March quarter. In addition, the net profits zoomed by 40 percent from Rs. 35 crores to Rs. 49 crores during the same period.
Expansion Initiatives:
The company is initiating an expansion of its manufacturing capacity through debottlenecking initiatives and brownfield capital expenditure. Their objective includes enhancing ABS capacity from 85 kt to 105 kt and PS capacity from 66 kt to 105 kt through these projects.
Important Financial ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 23.96 percent and a return on capital employed (RoCE) of 30.20 percent for the period spanning FY23-24. Additionally, during the same timeframe, the net profit margin stood at 7.79 percent.
Company Profile:
Headquartered in Gujarat, Styrenix Performance Materials Limited is the leader and number one producer of Absolac (ABS) and Absolan (SAN) in India.
ABS is a plastic resin used for manufacturing home appliances, automobiles, consumer durables and machinery, while Absolan is a polymerized plastic resin primarily used in products such as lighting, stationery, novelties, refrigerators and cosmetic packing.
Written By Vaibhav Patil
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