IVP skyrockets 70% in 6 days post Q3 results; hits over 3-year high

Shares of IVP hit 10 per cent upper circuit for a third straight day, touching their highest level since August 2018 on the BSE

Shares of IVP hit 10 per cent upper circuit band for a third straight day, touching an over three-year high of Rs 201.85 the BSE in Friday's intra-day trade. It was quoting at its highest level since August 2018.

In the past six trading days, the stock of the commodity chemicals' company has zoomed 70 per cent after it reported 47 per cent year-on-year (YoY) growth in profit after tax (PAT) at Rs 6.38 crore. Revenue from operations jumped 74 per cent YoY at Rs 156.96 crore.

For the first nine months (April-December) of financial year 2021-22 (9MFY22), the company's PAT zoomed to Rs 10.58 crore from Rs 0.72 crore in 9MFY21. It had reported PAT of Rs 4.50 crore in entire previous financial year FY21. Revenue from operations also more-than-doubled at Rs 383 crore in 9MFY22 from Rs 172 crore in 9MFY21.

IVP is engaged in chemical manufacturing business. The company has manufacturing facilities in Maharashtra and Karnataka and sells primarily in India. The Polyurethane (PU) division was started in 2017 and manufactures polyurethane chemicals for shoe soles and polyurethane adhesives for the flexible film packaging industry.

The company has successfully established many new products in the new business division of polyurethane adhesives for flexible laminated films. With this diversification into an 'Essential' sector, the company is now looking to further accelerated growth while reducing dependency on the existing foundry and footwear divisions. The new government initiatives like export and production incentive schemes are helping the demand growth.

India is the second largest producer of footwear and castings in the world after China. Casting production is heavily dependent on the automotive and farm sectors and both witnessed strong growth in the second half of the financial year under review, IVP said in FY21 annual report.

The longer lead time of imports and volatility in the local market gave opportunities to local suppliers to take a higher share of the market, with IVP also benefiting from increased market share in footwear chemicals during the financial year under review, the company said.

At 11:00 am, the stock of IVP was 4 per cent higher at Rs 191.50, as compared to 0.05 per cent decline in the S&P BSE Sensex. A combined around 882,000 equity shares changed hands on the counter on the NSE and BSE till the time of writing of this report.