Shares of this micro-cap stock rose 8 percent on Thursday after the company successfully commissioned its new manufacturing facility in Gujarat, following the resolution of power supply issues. The plant, now fully operational, is expected to significantly boost production capacity in the coming years.
Share Price Movement
During Thursday’s trading session, Kaka Industries Ltd’s share price reached an intra-day high of Rs.305.05 per share, a 3.32 percent increase from the previous close of Rs.281.95 apiece. The shares have retreated since then and currently trading at Rs.281.95 per share. Over the past year, the shares have delivered 76 percent.
What is the news
Kaka Industries Limited, a prominent manufacturer of PVC-based products, has successfully commissioned its state-of-the-art manufacturing facility in Village Lasundra, Tehsil Kathlal, District Kheda, Gujarat. This achievement came after overcoming a longstanding power supply issue that had restricted the plant’s operations for six months.
Spanning around 8,00,000 square feet, with 4,00,000 square feet of constructed and under-construction areas, the facility is designed to achieve a capacity of 40,000 metric tons per annum (MTPA). The output is expected to surpass the current utilization of 18,000 MTPA by more than 120 percent within 2 to 3 years.
With the power supply issue resolved, Kaka Industries now receives a steady power supply from Madhya Gujarat Vij Company Limited (MGVCL), allowing the plant to function at full capacity and improve operational efficiency.
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Market Presence
Kaka Industries has developed a strong distribution network, with 300 dealers spanning over 20 states and Union Territories across India. This wide coverage ensures that its products are easily accessible to customers nationwide.
The company has also established key depots in Gagilapur (Telangana), Dadri (Uttar Pradesh), and Surat (Gujarat) to streamline logistics and distribution processes.
Financial Overview
In its latest financial update, the company reported net sales of Rs.95 crore for Q2 FY25, marking an 8 percent increase from Rs.88 crore in Q2 FY24. Additionally, net profits saw a rise of 17 percent, reaching Rs.7 crore, compared to Rs.6 crore during the same period last year.
About the Company
Founded in 2019, Kaka Industries Ltd is a leading manufacturer of polymer-based profiles, with a specialization in uPVC and PVC products. The company has rapidly emerged as a significant player in the industry, offering a wide range of solutions for applications such as doors, windows, partitions, and kitchen cabinets.
Written by – Siddesh S Raskar
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