This Smallcap stock which deals in the business of Granite and is known for its quality, uniqueness, variation, and design under the Pokarna brand hit a 20 percent upper circuit after reporting a net profit growth of 138% quarter on quarter.
Price Movement
Pokarna Limited’s stock in Friday’s session touched a day’s high of Rs. 1348.00 per share up by 20.00 percent. The stock reiterated from the day’s high and was trading at Rs. 1,325.65 which is 18.01 percent from the previous closing price of Rs. 1,123.35. The stock has delivered a multi-bagger return of around 182 percent in the past year and has outperformed the Nifty Index in the same period.
Financial Performance
Their Q3FY25 results show revenue from operations of Rs. 223.61 crore which declined by 11.01 percent year on year, from Rs. 251.27 crore in Q3FY24 and a 35.85 percent increase from Rs. 164.60 crore in Q2FY25. Their net profit increased by 12.55 percent year on year, from Rs. 44.95 crores in Q3FY24 to Rs. 50.59 crores in Q3FY25. Quarterly, the profits increased by 138.31 percent from Rs. 21.23 crore.
Business Segments
As per the recent December 2024 results, the company recognizes its revenue from the Granites segment which contributed around 2.98 percent, and the remaining 97.01 percent from Quartz Surfaces. The granite segment is under loss and it has widened year on year. However, despite the decline in quartz segment revenue growth year on year, the operating profit has been consistent.
Capex Plans
The company recently announced its plan to invest around Rs. 440 crore to expand its quartz manufacturing in Telangana. It is expected to be operational by March 2026 to meet demand and funds for the investment to be covered through the mix of debt and internal accruals.
Company Overview
Pokarna Limited was established in 1991. It is India’s largest granite exporter renowned for its high-quality products and innovative manufacturing processes. They also operate in the apparel sector with the brand Stanza.
Written by Santhosh S
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