Shares of this undervalued micro-cap stock jumped up to 10 percent in Wednesday’s trading session after the company posted financial results for the quarter ended September 2023.
With a market capitalization of Rs 526.20 crores, the stocks of Aarti Surfactants Limited opened their trading hour on Wednesday at Rs 624 and currently trades at Rs 620.75. The scrip witnessed an intra-day high of Rs 657.60 exhibiting a gain of around 10 percent compared to the previous close of Rs 595.80 apiece.
Such stock price movements were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE) dated 31st October 2023, announced financial results for Q2FY23-24, for the quarter ended September 2023.
On a sequential basis, the company reported a dip in numbers as far as the operating revenues and net profits are concerned. The former declined from Rs 149 crores during Q1FY23-24 to Rs 144 crores during Q2FY23-24, and, the latter, keeping the timeframe the same, shifted down from Rs 5.24 crores to Rs 4.74 crores.
Comparing Q2FY22-23 v/s Q2FY23-24, the company saw opposing movements in the metrics mentioned above with the operating revenues, on one end, reducing from Rs 152 crores to Rs 144 crores, and, the net profits, during the same period, drastically jumping from 32.32 lakhs to 4.74 crores representing an increase of a huge 1,367 percent.
Historically, the company has increased its profitability metrics with the return on equity (RoE) increasing from 4.09 percent during FY21-22 to 8.36 percent during FY22-23, and, the return on capital employed (RoCE) jumping from 6.87 percent to 10.60 percent. In addition, the company reduced its debt-to-equity ratio from 1.19 times to 0.89 times during the same time horizon.
As per the shareholding data for the quarter ended September 2023, the company’s Promoters hold a 49.81 percent stake followed by the Public (retail) investors holding a 50.14 percent stake in the company.
Aarti Surfactants Limited is a company based in India that is engaged in the business of producing ionic and non-ionic surfactants and other specialty products, serving home & personal care, agro, oil, and industrial industries. The Company’s product portfolio includes surfactants, rheology modifiers, Ultraviolet (UV) filters, syndet & soap bases, etc.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
