This small cap company secured 5-year contract with leading multinational, marking entry into contract manufacturing, PAT surged by 200 per cent in Q4!
The stock has delivered a return of over 1,064 per cent to their shareholder.
Excel Industries Limited, a pioneer in indigenous chemical technology and sustainable waste management, announced the signing of a long-term agreement with a leading multinational company for the supply of a specialized chemical. This 5-year contract is expected to generate revenue between Rs 50 to Rs 70 crores for the company over its duration. This agreement marks Excel’s foray into contract manufacturing. Leveraging its expertise in various chemistries developed over the years, the company is now poised to offer enhanced contract manufacturing services to its customers.
Management Commentary
Commenting on this development, Mr. Ravi Ashwin Shroff – Managing Director said, “We are pleased to announce this long-term supply agreement with a reputed Multinational Company. We firmly believe that opportunities like these will open up pathways for significant growth in Contract Manufacturing, and we are confident that our expertise in diverse chemistries will continue to unlock new opportunities for us. We look forward to exploring new avenues for growth in manufacturing opportunities in the high-value chemical space. We believe contract manufacturing would be a promising growth driver for Excel Industries in the future. We will continue to engage with customers to expand the business in Excel Industries in the coming years.”
Business Overview
Excel Industries Limited is a pioneer in India’s indigenous chemical technologies and waste management practices. It is one of the oldest players in the domestic chemical manufacturing fraternity. It has 3 state-of-the-art large-scale manufacturing sites in Roha, Lote, and Vishakhapatnam. It specializes in Agro Chemical Intermediates, Specialty Chemicals, Polymer Inputs and Pharmaceutical API & Intermediates.
Share Performance
On Friday, the company's stock closed at around Rs 1024.90 per share, with a market capitalisation of Rs 1288 crore. Additionally, the stock has delivered a multibagger return of around 1064 per cent in the past decade.
Financial performance
According to the Quarterly Results, in Q4 FY24, the company reported a revenue of Rs 233.54 crore, representing a growth of 3.30 per cent, and a net profit of Rs 6.67 crore. In FY24, the company reported a revenue of Rs 826 crore and a net profit of Rs 17 crore, compared to a net profit of Rs 80 crore in the previous year.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.