The stock of this specialty chemicals has zoomed 51% in one month

Shares of Shree Pushkar Chemicals & Fertilisers hit a 52-week high of Rs 301.10, on rallying 11 per cent on the BSE in Thursday’s intra-day trade in an otherwise choppy market on expectations of strong earnings. The company is an integrated dye manufacturing solution company with a diversified product portfolio of dyestuffs, dye intermediates, acids, fertilisers and animal feed additives.

In the past one month, the stock has zoomed 51 per cent as compared to a 5 per cent gain on the S&P BSE Sensex. The stock had hit a record high of Rs 338 on January 10, 2018.

For the first nine months (April to December) of financial year 2021-22 (9MFY22) on consolidated basis the company reported profit after tax (PAT) of Rs 41 crore, up 46 per cent as compared to PAT of Rs 28 crore in 9MFY21.

On the consolidated basis the company’s total volume grew by 31 per cent for 9MFY22 versus 9MFY21. Dye segment grew by 47 per cent and revenue from the segment has grown by 60 per cent in December quarter (Q3FY22) versus Q3 FY21.

The management believes that by the end of this year in comparison to the last year, company would be doubling its profitability.

The boost in volume is also because of enhanced volume from the subsidiary Madhya Bharat Phosphates and Kisan Phosphates which the company acquired in the past. The management looks forward to the growth momentum in overall business in the quarters to come. However, with increasing revenue, the management anticipates operating leverage playout, the company should slow down to bottom line growing forward.