Share prices of this small-cap stock hit a new all-time high in the trading session on Friday after the company announced its financial results for Q3 FY23-24, which is, for the quarter ended December 2023.
Cement stock hits a new all-time high after its net profits increases by 76.4% in Q3
With a market cap of Rs. 1,667.31 crore, shares of Shree Digvijay Cement Co. Ltd. hit a new 52-week high at Rs. 123.9 on January 19 and closed at Rs. 113.8 compared to its previous close of Rs. 113.
This rise in the share prices was observed after the company released its financial results (standalone and consolidated) for the third quarter and nine months ended 31st December 2023, through a recent filing with the stock exchanges.
The consolidated revenue from operations increased to Rs. 191.3 crore in the December 2023 quarter from Rs. 183.49 crore in the September 2023 quarter, of which, the revenue from operations of the cement business for the December 2023 quarter was Rs. 191.18 crore, the same for the logistics business was Rs. 0.11 crore.
Furthermore, the after-tax profit grew by around 76.4 percent in the December 2023 quarter to Rs. 31.40 crore from Rs. 73.97 crore in the September 2023 quarter.
The company reported a profit of Rs. 56.04 crore and a revenue of Rs. 573.81 crore for the nine months ended December 2023 quarter. As of the December 2023 quarter, the total expenses were Rs. 151.36 crore compared with Rs. 175.26 crore in the September 2023 quarter.
The company has given over 46.5 percent returns in the past six months and nearly 53.47 percent in the last one year. So far, it has given returns of more than 16.1 percent in 2024.
For the nine months ended December 2023, Shree Digvijay Cement Co. Ltd. has allotted 1,567,500 equity shares of Rs. 10 each to the option grantees. Pursuant to this allotment, the paid-up equity share capital of the Company has increased from 145,202,778 equity shares to 146,770,278 equity shares of Rs. 10/- each.
As of December 2023, FIIs hold 2.91 percent of the shares, whereas DIIs hold 0.70 percent of the shares in the company, aggregating to 3.61 percent of the institutional holdings.
Shree Digvijay Cement Company Ltd is one of India’s pioneers in manufacturing cement which started its operation in 1944. It is primarily engaged in the business of manufacturing and sale of cement, and focuses on generating and consuming more than 65 percent of its power requirements through green energy.
Shree Digvijay Cement Co. Ltd.: A Rising Star in the Small-Cap Universe
Introduction
Witness the remarkable journey of Shree Digvijay Cement Co. Ltd. as its share prices reach unprecedented heights. The company’s recent financial results for Q3 FY23-24, ending in December 2023, have set new benchmarks, making it a focal point for investors and industry enthusiasts alike.
Share Price Surge: Breaking Records
In a surprising turn of events, Shree Digvijay Cement Co. Ltd.’s shares soared to a new 52-week high at Rs. 123.9 on January 19. Closing at Rs. 113.8, this surge followed the disclosure of the company’s Q3 FY23-24 financial results.
Financial Performance Overview
Consolidated Revenue Growth
The consolidated revenue from operations witnessed a substantial increase, reaching Rs. 191.3 crore in the December 2023 quarter compared to Rs. 183.49 crore in the preceding quarter. The cement business’s revenue for the same period was Rs. 191.18 crore, with the logistics business contributing Rs. 0.11 crore.
Profitability Soars
Notably, the after-tax profit demonstrated a remarkable growth of approximately 76.4 percent in the December 2023 quarter, reaching Rs. 31.40 crore from Rs. 73.97 crore in the September 2023 quarter.
Nine-Month Performance
For the nine months ended December 2023, the company reported a profit of Rs. 56.04 crore and a revenue of Rs. 573.81 crore. Total expenses for the December 2023 quarter were Rs. 151.36 crore, down from Rs. 175.26 crore in the September 2023 quarter.
Investor Delight: Impressive Returns
Shree Digvijay Cement Co. Ltd. has proven to be a lucrative investment, offering over 46.5 percent returns in the past six months and an impressive 53.47 percent in the last year. The year 2024 has already seen returns exceeding 16.1 percent.
Equity Expansion
In a strategic move, the company allotted 1,567,500 equity shares of Rs. 10 each to option grantees for the nine months ended December 2023. This increased the paid-up equity share capital from 145,202,778 to 146,770,278 equity shares of Rs. 10/- each.
Institutional Holdings
As of December 2023, Foreign Institutional Investors (FIIs) hold 2.91 percent of the shares, while Domestic Institutional Investors (DIIs) hold 0.70 percent. Collectively, institutional holdings stand at 3.61 percent, reflecting investor confidence.
Legacy of Excellence: Shree Digvijay Cement Co. Ltd.
Established in 1944, Shree Digvijay Cement Co. Ltd. holds a pioneering position in India’s cement manufacturing sector. With a commitment to sustainability, the company focuses on generating over 65 percent of its power requirements through green energy.
FAQs
Q: What led to the surge in Shree Digvijay Cement Co. Ltd.’s share prices?
A: The remarkable surge was attributed to the company’s impressive Q3 FY23-24 financial results, revealing substantial revenue growth and profitability.
Q: How has the company performed in the past nine months?
A: Shree Digvijay Cement Co. Ltd. reported a profit of Rs. 56.04 crore and a revenue of Rs. 573.81 crore for the nine months ended December 2023, showcasing consistent growth.
Q: What is the institutional holding pattern for Shree Digvijay Cement Co. Ltd.?
A: As of December 2023, FIIs hold 2.91 percent, while DIIs hold 0.70 percent, making up a total institutional holding of 3.61 percent.
Q: How does the company contribute to sustainability?
A: Shree Digvijay Cement Co. Ltd. focuses on generating and consuming more than 65 percent of its power requirements through green energy, showcasing a commitment to environmental responsibility.
Q: What is the significance of the equity expansion through allotment of additional shares?
A: The allotment of 1,567,500 equity shares demonstrates strategic planning and expansion, contributing to the growth and financial strength of the company.
Q: What sets Shree Digvijay Cement Co. Ltd. apart in the cement manufacturing sector?
A: With a legacy dating back to 1944, the company is known for its commitment to excellence, sustainability, and innovation in cement manufacturing.
Conclusion
In conclusion, Shree Digvijay Cement Co. Ltd. stands as a shining example of success in the small-cap stock arena. The surge in share prices, robust financial performance, and sustainable practices position the company as a favorable choice for investors looking for both returns and ethical investment avenues.
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