Wife of Ace Investor Madhusudan Kela Bought 5,00,000 Shares of Newly Listed Ethanol Company – Do You Own It?

HDFC Mutual Fund holds around a 2.65 per cent stake in the company.

Madhuri Madhusudan Kela, wife of renowned investor Madhusudan Kela, has purchased 5 lakh shares of this newly listed sugar-based ethanol company.

Incorporated in 1956, it is a Small-Cap integrated company with operations spanning sugar, ethanol, bio-based chemicals, and power. As of March 31, 2024, it is India’s largest ethanol producer by volume. The company produces ethanol, a renewable fuel derived from sugarcane, which is used for blending with gasoline (biofuel), in the pharmaceutical industry, and chemical manufacturing. GBL operates in the sugarcane-rich regions of Karnataka and Maharashtra, ensuring proximity to key resources.

Madhuri Madhusudan Kela acquired a total of 16.78 lakh shares of Godavari Biorefineries Ltd at an average price of Rs 335.66 per share on October 30.

Financial Performance

As per the Quarterly Results in June 2024, Godavari Biorefineries Ltd recorded a revenue of Rs 523 crore. The company reported an operating loss of Rs 12 crore instead of profit for the period. The net loss stood at Rs 26 crore. Looking at the annual performance, the company generated a revenue of Rs 1687 crore in FY24, compared to Rs 2015 crore in FY23. The operating profit for FY24 was Rs 134 crore, with a net profit of Rs 12 crore compared to a profit of Rs 20 crore.

Share Performance

At the start of today’s trading session, Godavari Biorefineries Ltd opened at Rs 350.50 per share, compared to Rs 355.80 per share on the BSE. Currently, the company’s shares are trading at around Rs 342.40 per share on the BSE. The current market capitalization stands at Rs 1,752 crore, and the stock has not generated impressive multibagger returns instead it is trading below the final IPO issue price of Rs 352 each.

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