Promoter bought 4,21,102 shares: Heavy volume, hit 52-week high today; This debt-free sugar stock rallied over 5 per cent today!

Promoter bought Rs 4,26,00,000 worth of shares of this debt-free sugar company.

Investors must keep this Small-Cap sugar company on the radar, 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 reason to keep this stock on the radar is that the Company’s largest promoter Seshasayee Paper & Boards purchased 4,21,102 shares worth Rs 4.26 crore this month and today the sugar stocks have attracted greater attention from market participants.

Also read Price and Volume Breakout: 3 Sugar Stocks under Rs 50 to Keep on Radar!

At the start of today’s trading session, the stock of Ponni Sugars (Erode) Ltd opened at Rs 460.60 per share, compared to the previous day's closing figure of Rs 464.85 per share on the BSE. Currently, the stock is at Rs 488.70 per share on the BSE. The company's current market capitalization stands at Rs 420.20 crore, and the stock has generated a return of around 31 per cent in the past 3 months.

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.