Dark Horse Stocks of the Day : India Pesticides Ltd surges 32% in 2 days

The shares of India Pesticides Limited (IPL) witnessed a significant surge today. The stock commenced trading at Rs 255, compared to the previous day’s closing price of Rs 256. During the intraday session, the stock exhibited a remarkable 12% surge accompanied by a significant trading volume.

India Pesticides Limited has been a globally operating agrochemical manufacturer in India since 1984. The company is the sole Indian manufacturer and ranks among the top five global manufacturers for several technical, including Folpet, Thiocarbamate Herbicide, and various other products. 

Upon scrutinising today’s share volumes, it becomes apparent that there has been a substantial increase of over 5.5 times in trading volumes compared to its average volumes on the BSE. As of writing this article, the shares of the company are up by Rs 29 or 11.32% and are trading at Rs 285 each on the BSE. 

The stock’s 52-week high and low are Rs 329.90 and Rs 197.50, respectively. Possessing a market capitalization of Rs 3,282 crore, the stock has showcased outstanding performance in recent periods, yielding a modest 32% return in a week. Although the stock has not performed well historically, looking at the weekly candle, signifies that something big is going to happen.

Financial Performance

In the June quarter of FY24, the company’s revenue from operations experienced a decrease of 7.8% YoY, going from Rs 218 crore to Rs 201 crore. The operating profit of the company fell from Rs 56 crore to Rs 23 crore, and on a sequential basis, it decreased from Rs 42 crore to Rs 23 crore. The operating profit margin stood at 11%.

Meanwhile, the net profit of the company amounts to Rs 16 crore, against a profit of Rs 30 crore in the last March quarter of FY23.

The company’s return on capital employed (ROCE) and return on equity (ROE) are at 28% and 20%, respectively. The book value of the company is Rs 67.3, which means the stock is trading at a price-to-book value of 4.2 times in the market, whereas the price-to-earnings ratio is 26.8 times.

Here is the chart presentation of the company’s shares on the weekly time frame:

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions