The shares of this sugar company hit a 10 percent upper circuit to an intraday high of ₹43.14 per share on Monday after the company repaid its entire loan of ₹201 crores.
SBEC Sugar Ltd. belongs to the penny-cap category with a market capitalization of ₹206 crore.
SBEC Sugar Ltd. repaid its entire loan of ₹ 201 crores along with interest thereon taken from the U.P. Co-operative Bank Limited. The company reported this in its exchange filing.
The bank has released the mortgage on the company’s asset and immovable properties, as well as the second charge on the immovable properties of SBEC Bioenergy Limited (a subsidiary of the company), in connection with the closure of the loan.
According to a year-on-year comparison of financials, the company’s revenue declined by 5 percent from ₹151.48 crores in Q3 FY23 to ₹144.10 crores in Q3 FY24. Within the same time period, the net losses declined from ₹10.42 crores to ₹2.09 crore.
SBEC Sugar Ltd. shares gained 23 percent in the last six months and 34 percent in a year.
SBEC Sugar Ltd. is engaged in the production of sugar. The company has an installed capacity of 60,000 metric tonnes of sugar per year, which has been increased to 120,000 metric tonnes per year at present. Also, the company has a co-gen facility.
As of a recent quarter, the company promoter holds a 65.13 percent stake in the company, and Foreign Institutional Investors hold a 2.01 percent stake and retail investors hold a 32.86 percent stake in the company.
In the most recent fiscal year, the company posted a gross profit margin of 4.74 percent, accompanied by a net profit margin showing a deficit of 1.59 percent.
Written by Omkar Chitnis
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