Synopsis:
Goyal Salt jumped sharply after the company secured its largest order worth Rs 78.36 crore from the Chhattisgarh Government for the supply of 75,000 MT of ISI Mark Refined Iodized Amrit Salt under the schemes of the government.
The shares of this leading manufacturer and dealer of Sodium Chloride (Table Salt) are in focus after securing a key order from the Chhattisgarh Government. In this article, we will dive more into the details.
With a market capitalization of Rs 335 crore, the shares of Goyal Salt Ltd made a day high of Rs 189.80 per share, up by 5 percent from its previous day closing price of Rs 181.45 per share. In the last one year, the stock has corrected by over 18 percent, as compared to NIFTY 50’s positive return of 4 percent.
About the Order
Goyal Salt, through a stock exchange filing, announced that it secured its single largest work order for the company from the Chhattisgarh Government worth Rs 78.36 crore. The order is to provide 75,000 metric tons of ISI Mark Refined Iodized Amrit Salt under government schemes for the next year.
It is the single largest work order received by the company from any state/central Government. This order will be a major factor in the company’s revenue, and thus, it might be possible to witness the highest turnover of the company during the current financial year, along with a good profit.
Also read: Steel stock jumps 8% after reporting robust Q2 results
Financial Highlights
The company’s revenue for H2 FY25 came in at Rs 62 crore, down by 9 percent from Rs 68 crore in H1 FY25. Regarding its profitability, the company reported a net profit decline of 56 percent to Rs 4 crore in H2 FY25 as compared to Rs 9 crore in H1 FY25.
The stock has delivered an ROE and ROCE of 15.63 percent and 16.92 percent respectively, and is currently trading at a high P/E of 43.81x as compared to its industry P/E of 20.98x.
Goyal Salt Limited is a company that processes and sells quality salt for common daily use as well as for industrial use. The company produces different kinds of salt, such as iodized table salt, industrial salt, and double-fortified salt, thus providing the necessary raw material to both the soap, detergent, textile, glass, plastics, and chemical industries, and households.
Written by Satyajeet Mukherjee
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