Stock engaged in the manufacturing of biofuel and its by-products jumped upto 20 percent in the day’s trade upon receiving work order worth Rs. 564 Crores from OMCs to supply Biodiesel.
Price Action
With a market capitalization of Rs. 1,132 Crores, the shares of Kotyark Industries Limited were trading at Rs. 1,101 per equity share, up 14 percent from its previous day’s close price of Rs. 970.35.
What Happened
Kotyark Industries Limited has been awarded a tender conducted by Oil Marketing Companies (OMCs) like IOCL, BPCL, and HPCL for the supply of 48,381 KL of Bio Diesel for consideration of Rs. 564 Crores to be supplied from October 2024 to September 2025.
This work order was awarded followed by a joint tender opened by OMCs for the procurement of Biodiesel for a total quantity bidding of 8,57,039 KL for the period of October 2024 to September 2025.
About the Company
Kotyark Industries Limited is primarily engaged in the manufacturing of biofuel and its by-products. It operates in renewable green energy and the sustainable development of renewable natural resources (biofuels) through the adoption of technology that enables the net reduction of greenhouse gas emissions.
Kotyark Industries Limited has two biodiesel manufacturing units, at Sirohi, Rajasthan, and Anand, Gujarat, with a 4.8 Lakh Kilo Litres of Cumulative Annual Biodiesel Production Capacity and ~63,000 KL of Annual Crude Glycerin Production Capacity.
Financials & Ratios
Its revenue from operations grew by 55 percent from Rs. 127 Crores in H1FY24 to Rs. 197 Crores in H1FY25, accompanied by profits of Rs. 11 Crores to Rs. 18 Crores.
In terms of return ratios, it has reported a return on equity (ROE) of 20.6 percent and a return on capital employed (ROCE) of 23.4 percent. In terms of leverage, it has reported a debt-to-equity ratio of 0.67.
Written by: Bharath K.S
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