A leading integrated chemical manufacturer stock has shown impressive growth in its September 2024 quarter. The company’s stock surged to an intraday high of 6.18 percent after the results announcement. The company’s revenue increased by 31% YOY to Rs. 626.06 crore, and net profit increased by 114% YOY to Rs. 81.30 crore.
Stock Movement
After announcing its quarterly results, Epigral Limited’s share has jumped by 6.18% to an intraday high of Rs. 2,233.35 from the previous close of Rs. 2,103.30. The stock opened at Rs. 2,135 and is currently trading at Rs. 2,102.35. The market capitalization now stands at approximately Rs. 9,069.82 crore.
Q2 FY25 Result Walkthrough
Coming into the financial analysis of Epigral Limited Limited, the company’s revenue from operations increased by 30.96 percent YOY, from Rs. 478.15 crore in Q2 FY24 to Rs. 626.06 crore in Q2 FY25, and down by 3.84 percent QoQ from Rs. 651.20 crore in Q1 FY25.
The company’s EBITDA margin has improved from 23% in Q2 FY25 to 29% in Q2 FY25. Epigral Limited’s gross profit margin and net profit margin should be 42% and 13%, respectively, in Q2 FY25.
In Q2 FY25, Epigral Limited’s consolidated net profit increased by 114% YOY, reaching Rs. 81.30 crore compared to Rs. 37.99 crore during the same period last year. As compared to Q1 FY25, the net profit has decreased by 5.32 percent, from Rs. 85.87 crore.
The basic earnings per share of the company increased by 96.79% and stood at Rs 19.57 as against Rs 9.17 recorded in the same quarter in the previous year.
In terms of return ratios, Epigral Limited’s share ROE and ROCE are currently at 23 percent and 24 percent, respectively, in Q2 FY25. Pakka Limited has a debt-to-equity ratio of 0.8x.
Capacity Expansion
Epigral Limited has impressive manufacturing capabilities across its chemical product portfolio, with caustic soda leading at 400 KTPA, hydrogen peroxide at 60 KTPA, chloromethanes at 50 KTPA, and caustic potash at 21 KTPA.
The company’s CPVC resin and Epichlorohydrin production stands at 75 KTPA and 50 KTPA, with plans to expand by an additional 75 KTPA and 50 KTPA, respectively, in H1 FY27.
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Capex Plan
Epigral Limited demonstrates robust capital expenditure with ₹416 crore in FY2023 and ₹405 crore in FY2024. A major expansion plan of ₹780 crore is underway to establish the world’s largest CPVC plant (150,000 TPA) and India’s largest Epichlorohydrin facility (100,000 TPA) by H1FY27.
Client bases of Epigral Limited
Epigral Limited maintains a strong client portfolio that includes major players like Cardolite, Supreme, Solenis, and Gujarat Fluorochemicals (GFL) in the chemical sector. The company also serves established names such as Astral Pipes, Divis, Wavin, and SNF in infrastructure and water treatment. Additionally, they partner with conglomerates like Aditya Birla Grasim, Vedanta, and IPCA in diverse industrial segments.
Company Overview
Epigral Limited was incorporated in 2007 and was formerly known as Meghmani Finechem Ltd. The company is a leading integrated chemical manufacturer in India, operating from its Dahej facility. The company produces a diverse portfolio of chemicals, including India’s first epichlorohydrin plant and largest CPVC facility. Its product range includes caustic soda, chloromethanes, and hydrogen peroxide. Epigral focuses on sustainable practices and holds Responsible Care certification.
Written By – Nikhil Naik
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