Promoter Bought 4,21,102 Shares Worth Rs 4,26,00,000 of This Debt-Free Sugar Company: Stock Rallies 5 per cent

The shares of the company have delivered a return of around 250 per cent to its shareholders.

The promoters of this Small-Cap company which manufactures sugar and co-generates power. The company was incorporated in 1986 and manufactures sugar in Tamil Nadu. Its operations are partially integrated with a 19 MW co-generation plant. Additionally, the company derives income from the sale of bagasse (to paper manufacturing companies) and molasses (to animal feed companies).

The Company’s largest promoter Seshasayee Paper & Boards purchased 4,21,102 shares worth Rs 4.26 crore.

At the start of Friday’s trading session, the stock of Ponni Sugars (Erode) Ltd opened at Rs 444.45 per share, compared to the previous day's closing figure of Rs 418 per share on the BSE. Finally, the stock closed the day at Rs 438.65 per share on the BSE. The company's current market capitalization stands at Rs 377.17 crore, and the stock has generated a return of around 9 per cent in the past 1 year.

As per Quarterly Results in Q4 FY24, the company reported a quarterly revenue from operation of Rs 71 crore compared to a revenue of Rs 124 crore, representing a de-growth of 28.30 per cent on a YoY basis. The company posted a net profit of Rs 14 crore in Q4 FY24 compared to a net profit of Rs 12 crore.

Turning attention to the annual performance of the company, it reported a revenue of Rs 421 crore, compared to Rs 435 crore in FY23 representing a decline of 3.25 per cent YoY. Moreover, the company’s net profit stood at Rs 47 crore in FY24 compared to a profit of Rs 38 crore. Furthermore, the company is debt-free since fiscal year 2021.

Investors must keep this small-cap stock on their radar.

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