In Friday’s trading session, the share price of a company engaged in manufacturing sugar and byproducts hit a 5% upper circuit on BSE at Rs. 11.08, after a unit of the Madhya Pradesh government sanctioned subsidy of Rs. 11.37 crores for expansion.
With a market cap of Rs. 164.4 crores, the shares of Parvati Sweetners and Power Limited opened in the green at Rs. 10.79, up by 2.2 percent, compared to its previous closing price of Rs. 10.56.
What’s the news:
According to the latest regulatory filings on the BSE, the State Level Empowered Committee of Madhya Pradesh Industrial Development Corporation (a unit of Madhya Pradesh Government), Bhopal (MP), sanctioned a subsidy of Rs. 11.37 crores for expansion under the Investment Promotion Assistance Scheme.
The subsidy of Rs. 11.37 crores will be paid in seven equal yearly instalments of Rs. 1.62 crores.
Additional News:
Sugar stocks are in focus following the Union government’s decision to lift the restriction on sugar diversion for ethanol production for the Ethanol Supply Year (ESY) 2024-25.
The policy allows sugar mills and distilleries to utilise sugarcane juice, sugar syrup, B-heavy molasses, and C-heavy molasses to produce ethanol during ESY 2024-25, according to the agreements with oil marketing companies.
Financial:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 24.5 percent from Rs. 23.4 crores in Q1 FY23-24 to Rs. 29.14 crores in Q1 FY24-25.
However, its net profit decreased during the same period from Rs. 0.23 crores to Rs. 0.03 crores, indicating a decline of nearly 87 percent YoY.
In terms of return ratios, Parvati Sweetners and Power have reported a return on equity (ROE) of 1.42 percent, and a return on capital employed (ROCE) of 4.5 percent.
Stock Performance:
The shares of Parvati Sweetners and Power have delivered positive returns of nearly 24.7 percent in one year, but around 12 percent of negative returns year-to-date.
About the company:
Incorporated in 2011, Parvati Sweetners & Power Limited is engaged in the manufacturing of sugar and its by-products.
Written by Shivani Singh
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