The shares of Micro-Cap company, specializing in the production and supply of high-quality biodiesel from various raw materials such as used cooking oil, animal fat, and vegetable oil, jumped upto 8 percent upon receiving a work order from Indian Oil Corporation Limited (IOCL) and Hindustan Petroleum Corporation Limited (HPCL)
Price action
With a market capitalization of Rs. 161.10 Crores on Thursday, the shares of Rajputana Biodiesel Limited jumped upto 8.1 percent, making a high of Rs. 235.00 compared to its previous closing price of Rs. 217.30.
What Happened
Rajputana Biodiesel Limited and its subsidiary, Nirvaanraj Energy Private Limited, received Letters of Intent on April 16, 2025, to supply 3,543 KL of biodiesel valued at approximately Rs. 30 crores from Indian Oil Corporation Limited (IOCL) and Hindustan Petroleum Corporation Limited (HPCL).
This is part of a larger tender issued by IOCL, HPCL, and BPCL for 2,00,000 KL of biodiesel to be delivered between April and July 2025, and more orders for the remaining quantity are expected soon.
About the Company
Rajputana Biodiesel Ltd is a biodiesel production company based in India that produces biodiesel from various raw materials. The company was established to promote renewable energy and reduce dependence on fossil fuels. Rajputana Biodiesel Ltd. uses a state-of-the-art production process that involves the conversion of raw materials into biodiesel through a chemical process called transesterification.
Products offered
Their primary product is biodiesel, derived from non-edible vegetable oils, recycled fats, and methanol. The company also manufactures glycerin and fatty acids, which are by-products of the biodiesel production process. These by-products have various industrial applications, including use in animal feed, energy production, pharmaceuticals, chemicals, textiles, and the paper industry.
Financials
The company’s revenue rose by 68 percent from Rs. 26.49 crore to Rs. 44.53 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs. 1.99 crores to Rs. 4.86 crores during the same period.
Key Insights
The company has a strong financial outlook with a P/E ratio of 32.58, which is lower than the industry average of 41.45, indicating reasonable valuation. It has delivered a healthy average ROE of 40.30 percent and ROCE of 18.73 percent over the last three years, and the Promoter holding remains strong at over 65 percent.
Written by Sridhar J
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