Quarterly earnings impact: This specialty stock jumps over 28% in 2 trading sessions – What do investors need to know?

Specialty chemical company Meghmani Finechem shares reached a new record high of Rs 1,469.55 per share after rising nearly 14 percent on BSE intraday during Tuesday’s trading session. The stock in the last two days has jumped over 28 percent on BSE after robust quarterly results for March.

The small-cap company reported on Monday a robust operating and financial performance for the quarter at the end of March for the financial year 2021-22 (Q4FY22). Its profit after tax (PAT) jumped about three times to Rs 99 crore in Q4FY22 compared to Rs 33 crore in a year ago quarter amid strong sales.

Similarly, the company’s operating income increased by 93 percent to 499 crore Rs at the end of March quarter of FY22 against 259 crore Rs in the same quarter a year ago.

The counter has risen about 91 percent in the last two months from a level of Rs 771 on March 7, 2022, mostly based on expectations of strong Q4 results. Around. 12, the share has risen over 9 percent to Rs 1414 per share on BSE against an increase of 1.23 percent in S&P BSE Sensex.

Meanwhile, the company’s EBITDA (earnings before interest, tax, depreciation and amortization jumped 118 percent to 175 crore Rs from 80 crore Rs in the quarter a year ago, and the margin rose 405 bps to 35 percent year-on-year, despite high inflationary pressures on raw materials.

Management said in its commentary according to stock market filing: “Strong operational efficiency and internal cost control measures enabled the company to maintain margins even with inflationary pressures.”

A leading producer of chlor-alkali products and value-added derivatives – Meghmani Finechem is India’s 4th largest producer of caustic soda, chlorine and hydrogen and a producer of caustic potassium chloride, chloromethanes and hydrogen peroxide.

Leave a Reply

Your email address will not be published. Required fields are marked *