From specialty chemicals to paper: This micro-cap company ventures new segment with an expected turnover of Rs 50 crore!
The stock is up by 10 per cent in 5 days and over 25 per cent in 1 month.
Vipul Organics Limited, a leading specialty chemicals company in the pigments and dyes segment, has ventured into the Paper segment in the domestic market. Vipul Organics worked closely on its product innovation and over a period of 12-18 months created product lines completely focused on the segment, before launching them into the market.
This innovation in product lines with paper-focused dispersions and dyes has been appreciated by the industry and the initial client wins include leading players like Tamil Nadu Paper Limited, Andhra Paper, etc. Paper dyes are dyes used to change or add to the colour of paper. Paper dyes are coloured matter soluble in the medium of application.
The global Paper Dyes market size was at USD 1.03 billion in 2022 and is expected to grow to USD 1.47 billion by 2029, at a CAGR of 4.20 per cent. The paper dyes market is going to be the fastest growing among dyes and pigments. It is expected that almost 43 per cent of it will be dominated by the Asia Pacific region.
Mr Vipul P Shah, Chairman and Managing Director of Vipul Organics Limited added, the company is looking to expand into the paper industry and become the largest supplier of colourants to the segment. The company is already working with leading players in the industry and has set up a state-of-the-art R&D lab to develop solutions to customer pain points. Vipul Organics expects 5 per cent to 8 per cent of its revenue to come from the paper segment this year and Rs 50 crore from paper dispersions and dyes in the next 3-4 years.
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The company has a market cap of Rs 167 crore and has been maintaining a healthy dividend payout of 29.9 per cent. According to the Quarterly Results, the net sales increased by 15.14 per cent to Rs 36.14 crore and the net profit increased by 79.31 per cent to Rs 0.52 crore in Q1FY24 compared to Q4FY23.
On Monday, shares of Vipul Organics Ltd zoomed 4.65 per cent to Rs 130.40 per share with an intraday high of Rs 131 and an intraday low of Rs 124.05. The shares of the company saw a spurt in volume by more than 2.21 times on BSE. The stock is up by 10 per cent in 5 days and over 25 per cent in 1 month. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.