One of the penny stocks engaged in the manufacturing of liquefied petroleum gas (LPG) cylinders and related industrial gas cylinders. The stock has hit a 10 percent upper circuit after reporting a 706.96 percent YOY increase in revenue and a 247 percent YOY increase in net profit.
Stock Price Movement
With a market capitalization of Rs. 27.60 crores, the shares of Sarthak Industries Limited’s stock surged by 10 percent, reaching an upper circuit of Rs. 29.70 per share on Tuesday, up from its previous closing price of Rs. 27 per share.
Q3 FY25 Result Walkthrough
Coming into the quarterly results of Sarthak Industries Limited, the company’s consolidated revenue from operations increased by 706.96 percent YOY, from Rs. 7.62 crore in Q3 FY24 to Rs. 61.49 crore in Q3 FY25, and grew by 91.20 percent QoQ from Rs. 32.16 crore in Q2 FY25.
Further, the company’s EBIDT has converted from negative into positive, from Rs. -0.22 crore in Q3 FY24 to Rs. 1.35 crore in Q3 FY25.
In Q3 FY25, Sarthak Industries Limited’s consolidated net profit slightly increased by 246.67 percent YOY, reaching Rs. 1.04 crore compared to Rs. 0.30 crore during the same period last year. As compared to Q2 FY25, the net profit has increased by 18.18 percent, from Rs. 0.88 crore.
The basic earnings per share increased by 250 percent and stood at Rs 0.32 as against Rs 1.12 recorded in the same quarter in the previous year 2024.
In terms of return ratios, Sarthak Industries Limited’s share ROE and ROCE are currently at 3.62 percent and 6.4 percent, respectively. Sarthak Industries Limited has a debt-to-equity ratio of 0.01x, which shows the company is almost a debt-free company.
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Shareholding pattern
In September 2024, Sarthak Industries Limited had a majority stake held by the promoters at 36.27 percent and the public at 63.74 percent.
Products and services
Sarthak Industries Limited manufactures LPG cylinders, steel pipe-making machines, and polishing equipment, with products like stainless steel tube mills and buffing machines. The company also trades agricultural commodities like vanaspati ghee, wheat, and pulses, ensuring high-quality manufacturing and customer satisfaction.
Company Overview
Sarthak Industries Limited was incorporated on December 23, 1982, originally as Malav Metals Private Limited, and is based in Mumbai, India. The company specializes in manufacturing liquefied petroleum gas (LPG) cylinders at its facility in Pithampur, Madhya Pradesh.
Written By – Nikhil Naik
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