This SME small-cap company bagged an order worth Rs 733 crore; the stock price jumped more than 16 per cent in a day!

Looking at the broader picture, stock price has delivered multibagger returns of 234.74 per cent over the past year.

In a significant development for the energy sector, Indian Oil Corporation Limited (IOC), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL) jointly opened a tender on December 8, 2023, for the procurement of biodiesel. The total quantity up for bidding was a substantial 890,747 kiloliters, covering the period from December 2023 to September 2024.

Key Bidders

Two prominent players in the bioenergy industry, Kotyark Industries Limited and Yamuna Bio Energy Private Limited, participated actively in the bidding process. Kotyark Industries bid for an impressive 141,742 KL, while Yamuna Bio Energy bid for 22,273 KL on December 14, 2023.

Allocation Announcement

Following a thorough evaluation, the Oil Marketing Companies (OMCs) recently released a partial allocation sheet, granting a total of 418,750 KL. Kotyark Industries emerged victorious, securing the tender for supplying 73,037 KL of biodiesel, with an estimated order value of Rs. 594 Crores (excluding GST and Transportation Charges). Simultaneously, Yamuna Bio Energy, an amalgamating company with NCLT approval received on December 12, 2023, clinched the tender for supplying 17,098 KL, boasting an estimated order value of Rs. 139 Crores (excluding GST and Transportation Charges).

Total Impact

In a combined effort, Kotyark Industries and Yamuna Bio Energy have successfully secured the total tender for the supply of 90,135 KL of biodiesel. The cumulative estimated order value for both companies stands at an impressive Rs 733 Crores (excluding GST and Transportation Charges). This strategic move solidifies their position in the biodiesel market for the specified period from December 2023 to September 2024.

The company's robust performance is underscored by a solid 41.07 per cent increase over the past month. Impressively, the company has outperformed expectations with a remarkable 54.39 per cent growth over the last three months. Looking at the broader picture, Kotyark Industries has delivered multibagger returns of 234.74 per cent over the past year.

This is an SME Small-Cap stock with a market capitalization of Rs 1,076 crore. The stock is currently trading at Rs 1,232, with the company having a good return on equity (ROE) track record where it delivered an ROE of 35.7 per cent in the last 3 years maintaining a healthy dividend payout of 19.1 per cent.

About company

Kotyark Industries Limited, incorporated in 2016, is engaged in the manufacturing of biodiesel and its by-products, and is one of the key players across the state of Rajasthan in India. The Company focuses on green energy and sustainable development of renewable resources (biofuel) through the adoption of environmentally friendly technology. It has two manufacturing units in Rajasthan & Gujarat with a cumulative capacity of producing 600 KL of biodiesel per day from multi feedstock.

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