The shares of these penny stocks jumped 3 percent after the company approved the application for setting up a Solar Ancillary Manufacturing Unit at Biju for Rs 30 crore.
Price movement
With a market capitalization of Rs 94.29 crore, the shares of Ambo Agritec Ltd were trading at Rs 72.00 per share, increasing around 2.59 percent as compared to the previous closing price of Rs 70.18 apiece.
Reason for rising
The shares of Ambo Agritec Ltd have seen positive movement after the company approved the application for setting up a Solar Ancillary Manufacturing Unit at Biju Patnaik Energy Park, Khordha, Bhubaneswar, Odisha, with an investment of Rs. 30 crore. Moreover, the facility will manufacture PV Solar Cell Round Wire (2,000 MT) and PV Solar Module Bus Bar Ribbons (1,500 MT), crucial components for the solar module industry, supporting import substitution under the Domestic Content Requirement (DCR) policy. Furthermore, the project is set to begin in April 2025 and is expected to be completed within 12 months, generating direct and indirect employment. Infrastructure requirements include 2 acres of land, 10,000 liters/day of water, and 2,000 KVA of power, with financing structured as Rs. 9 crore in equity and Rs. 21 crore in institutional funding.
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Financial Performance
Looking forward to the company’s financial performance, revenue increased by 23 percent from Rs 42 crore in H1FY24 to Rs 52 crore in H1Y25. During the same period, net profit remains stable at Rs 1 crore as compared to the previous closing price.
Ratio analysis
The company’s critical ratios show that the return on equity magnified from 6.95 percent in FY22-23 to 7.66 percent in FY23-24, while the return on capital employed zoomed from 13.80 percent to 15.76 percent. The net profit margin (NPM) for fiscal year 23-24 is 1.38 percent.
Company Profile
Ambo Agritec Limited is an India-based food manufacturer. The Company is engaged in the manufacturing of biscuits, chips, Bengal specialty, foods, edible oil, and Indian tea. It provides consumer and bulk packaging services. The Company exports and imports biscuits, agro commodities, edible oil, and Indian tea.
Written by Abhishek Singh
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