Micro-Cap Stock Soars on Quarterly Result; Narmada Agrobase Posts Excellent 660 per cent Profit Growth & Announces Bold Expansion Plans!
The company’s EBITDA grew by 340.85 per cent to reach Rs 2.07 crore. Strong performance across the business segment contributed to the overall growth.
Shares of Narmada Agrobase Ltd jumped by 4.86 per cent to Rs 16 per share from its previous closing announcing a significant increase in its Profit After Tax (PAT) for the Q2 FY25. The company has achieved a remarkable growth in PAT of 660.10 per cent compared to the same period last year.
In the Quarterly Results of Q2FY25 profit after tax increased to Rs 1.29 crore, marking an exceptional growth of 660.10 per cent compared to Rs 17 lakh in same period last year. The company’s EBITDA grew by 340.85 per cent to reach Rs 2.07 crore. Strong performance across the business segment contributed to the overall growth.
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Neeraj Agrawal, Chairman & Managing Director, Narmada Agrobase Ltd commented: "We are thrilled to report such strong financial results, driven by both our operational efficiency and strategic initiatives. The significant increase in our Profit After Tax is a testament to the hard work of our team and the continued demand for our products and services. Our performance reflects our commitment to growth and value creation for our shareholders. This outstanding quarter reflects our strategic investments in growth and our ability to execute in a rapidly changing market environment. As we move forward, we remain focused on delivering sustainable growth, enhancing shareholder value, and capitalizing on new opportunities that align with our long-term vision"
The company remains optimistic about its growth prospects in the next quarters with a continued focus on key growth drivers, such as expanding into new markets, enhancing product offerings, etc. The company is well-positioned to capitalize on emerging opportunities and continue its trajectory of strong performance.
The company has recently completed its Rs 36.58 crore Rights issue. The funds raised through the right issue will be utilised to fund the company's expansion plans including meeting the working capital requirements, purchase of plant & machinery, acquisition of land, construction of oil mill plant, other civil works and for general corporate purpose among others.
The Company issued 24,387,685 fully paid-up Equity Shares of the face value of Rs 10 each for cash at a price of Rs 15 Per Equity Share aggregating to Rs 36.58 crore. The Rights entitlement ratio for the proposed issue is fixed at 9:5 (9 Rights equity shares of the face value of Rs 10 each for every 5 fully-paid equity shares held by the equity shareholders on the record date.
Out of the issue proceeds of Rs 36.58 crore, the company intends to use Rs 17.87 crore towards working capital requirement, Rs 7.70 crore towards acquisition of land, construction of oil mill plant & other civil works and purchase of plant & machineries and Rs 9.01 crore towards general corporate purposes.
Incorporated in 2013, Narmada Agrobase Ltd manufactures and sells cotton seed and cattle feed. The products manufactured by the company are used to feed cattle and provide a high amount of protein and other nutrients required by the animals. The by-products of these products are also used in the textile industry, the consumer goods industry and the paper industry.
This micro-cap stock should be kept under the radar. The company is a Small-Cap company having a market cap of Rs 60.8 crore The stock’s 52-week high is Rs 26.5 and its 52-week low is Rs 13.5.
Disclaimer: The article is for informational purposes only and not investment advice.