Shares of this chemical manufacturing company surged 6 percent in Wednesday’s trading session after securing an export order from Israel and Turkey. In just 3 months, the shares have delivered around 50 percent returns to its shareholders.
With a market capitalization of Rs. 125 crores, the shares of Mahickra Chemicals Ltd started Wednesday’s trading session on a lower note at Rs. 142 compared to its previous close of Rs. 146.70. During the trading session, the share hit a high of Rs. 156, gaining around 6 percent and closed the day at Rs. 148 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received an export order to the tune of 72 Metric Tons in Israel and Turkey for their high-end textile dyes which substantiate the claims about their high-end quality and value addition for Products.
With this significant order, the company marks its entry into the Israeli market, signifying a strategic expansion into this new territory.
Earlier, last month, the company received an export order of 144 Metric Tons from Turkey and Bangladesh for Textile speciality dyes.
Coming onto the company’s financial statements, the revenue decreased by 26 percent from Rs. 49.15 crores during H2 FY23 to Rs. 36.46 crores in H1 FY24. On the other hand, the net profits declined by 25 percent from Rs. 1.70 crores to Rs. 49 lakhs during the same period.
Due to increasing expenditure, the profitability metrics of the company declined with the return on equity (RoE) decreasing from 11.25 percent during FY 21-22 to 10.10 percent in FY 22-23, and, the return on capital employed (RoCE) showed a downward movement from 17.36 percent to 16.19 percent during the same timeframe. Furthermore, the net profit margin decreased from 3.27 percent during FY 21-22 to 3.18 percent during FY 22-23.
According to the latest shareholding pattern, the Promoters have 53.84 percent of stakes, FIIs have 0.59 percent of shares and the remaining 45.57 percent of stakes are with the Retail Investors.
Headquartered in Ahmedabad, Mahickra Chemicals was incorporated in 2017. The company is engaged in manufacturing, trading, and exporting dyes and chemicals, primarily focusing on black reactive dyes and offering over 40 different varieties of reactive dyes that cater to the textile industry.
Written By Vaibhav Patil
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