Shares of this microcap company jumped around 3 percent in Thursday’s trading session after a DII bought a 0.65 percent stake through the Bulk deal. The stock has delivered around 25 percent returns to its shareholders in six months.
With a market capitalization of Rs. 430 crores, the share of Ponni Sugars (Erode) Ltd started Thursday’s trading session on a higher note at Rs. 493.80 compared to its previous close of Rs. 492.20. During the trading session, the shares hit a high of Rs. 507.95, gaining around 3 percent and are currently trading at Rs. 500 apiece.
According to the NSE bulk deals, Rational Equity Flagship Fund I, a Mumbai-based SEBI-registered AIF bought 55,500 equity shares i.e., equivalent to 0.65 percent of paid-up equity of the company at an average price of Rs. 500.22 per share via open market transactions, which amounted to approx Rs 2.77 crores.
Coming onto the company’s financial statements, the revenue declined by 41 percent from Rs. 124 crores during the December quarter to Rs. 71 crores in the March quarter. Due to a decrease in expenditure, the net profits increased by around 17 percent from Rs. 12 crores to Rs. 14 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 8.49 percent and a return on capital employed (RoCE) of 9.13 percent for the period spanning FY23-24. Further, the net profit margin stood at 11.12 percent during the same timeframe.
The company operates a sugar mill at Erode, Tamil Nadu with an installed capacity to crush 3500 tons of sugarcane per day and generates 19 MW of power. In addition to manufacturing sugar, the company also derives income from the sale of bagasse (to paper manufacturing companies) and molasses (to animal feed companies).
According to the latest shareholding pattern, Based on the current shareholding distribution, Promoters retain 42.36 percent of the equity, Foreign Institutional Investors (FIIs) hold 22.64 percent, Domestic Institutional Investors (DIIs) possess 0.05 percent, and the remaining 34.96 percent is owned by retail investors.
Headquartered in Tamil Nadu, Ponni Sugars is primarily engaged in the manufacturing of sugar, with additional revenue streams from the co-generation of power, the sale of bagasse, and molasses.
Written By Vaibhav Patil
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