70 per cent from its 52-week low: This petrochemicals company signs 12.5 MW power delivery agreement with Tata Power Company Ltd!

70 per cent from its 52-week low: This petrochemicals company signs 12.5 MW power delivery agreement with Tata Power Company Ltd!

Kiran Shroff
/ Categories: Trending, Mindshare

The stock gave over 70 per cent from its 52-week low.

Supreme Petrochem Ltd informed that the company has entered into a power delivery agreement (PDA) for 12.5 MW (i.e., 17.95 MWp) with TP Saturn Limited, a special purpose vehicle (SPV) formed by Tata Power Renewable Energy Ltd (TREPL) for a 12.5 MW group captive project through the SPV and supply to company's plant at Amdoshi in Raigad District, Maharashtra for 25 years (with lock-in period of 15 years). Tata Power Renewable Energy Ltd is a wholly-owned subsidiary of Tata Power Company Ltd.

Located in Achegaon in Maharashtra, the installation will produce around 27.5 million units (MUs) of non-conventional power annually and this partnership is expected to reduce carbon emissions by 20,075 metric tonnes Kg per annum. The Installation is scheduled to be operational within 8 months of the power delivery agreement (PDA) signing. The company will hold 26 per cent equity shares in the SPV viz. TP Saturn Limited for an investment of around Rs 6 crore.

On Friday, shares of Supreme Petrochem plunged 4.72 per cent to Rs 571.45 per share with an intraday high of Rs 602.50 and an intraday low of Rs 566.

Supreme Petrochem Ltd (SPL) is a petrochemical company engaged in the business of manufacturing polystyrene, compounds of styrenics and other polymers. The company has a market cap of over Rs 10,000 crore with an ROE of 28.1 per cent and an ROCE of 37.4 per cent.

The company has reduced its debt significantly and is now almost debt-free, with a current debt of just Rs 16.7 crore. It has also been maintaining a healthy dividend payout of 32.2 per cent and has delivered good profit growth of 32.5 per cent CAGR over the last 5 years.

The stock gave over 70 per cent from its 52-week low of Rs 336.50 per share. Investors should keep an eye on this Mid-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.

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