With a market capitalization of Rs 7,200 crores, shares of this small-cap stock gained 11.3 percent post release of Q1FY24 results.
The stocks of GMM Pfaudler Limited opened their trading hour on Friday at Rs 1,480 and currently trade at Rs 1,613, a gain of approximately 11.3 percent as compared to the previous close of Rs 1,449.85 apiece.
Such sharp movements in the share prices were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE) dated 10th August 2023, announced the financial results for the quarter ended June 2023.
The company, on a sequential basis, reported an increase in the prime indicators of business such as the operating revenues and net profits. The operating revenues took a shift from Rs 866 crores during Q4FY22-23 to Rs 912 crores during Q1FY23-24, and, the net profits rose from Rs 36 crores to Rs 54 crores indicating an increase of 50 percent.
In addition to the above, the company’s financials have shown opposing movements as far as the above-mentioned metrics are concerned with the operating revenues, increasing from Rs 739 crores during June 2022 to Rs 912 crores during June 2023, and, the net profits, keeping the timeframe the same, reducing from Rs 61 crores to Rs 54 crores.
Having a glance at the annual numbers posted, the small-cap company has reported an increase in the net profit margins from 2.96 percent during FY21-22 to 6.71 percent during FY22-23. The return on capital employed (RoCE) doubled from 9.53 percent to 18.50 percent during the same time horizon.
According to the shareholding pattern data available for the June 2023 quarter, the company’s Promoters hold a 38.74 percent stake, and the Foreign Institutional Investors (FIIs) hold a 18.84 percent stake in the company.
GMM Pfaudler Limited is a company based in India that is engaged in the business of manufacturing corrosion-resistant glass-lined equipment with applications in pharmaceutical, chemical, and other allied industries. The company operates within as well as outside India with the majority of earnings coming from Indian market operations.
Written by Amit Madnani
