Vadilal Industries extends fall; slips 10% in 3 days after 58% rally in Feb

In the previous month, stock of the ice cream maker zoomed 58 per cent, as against 2 per cent decline in the S&P BSE Sensex

Shares of Vadilal Industries slipped 10 per cent to Rs 1,190 in Friday's intra-day trade on the BSE, falling 13 per cent in the past three trading days, after over 50 per cent surge in the month of February.

In the previous month, stock of the packaged foods company zoomed 58 per cent as against a 2-per cent decline in the S&P BSE Sensex. At 12:41 PM, it traded 7.5 per cent lower at Rs 1,217 apiece as compared to 0.91 per cent fall in the benchmark index.

Vadilal Industries said the significant movement in the price of their security was purely market driven. "We would like to reiterate that the Company will continue to comply with the listing regulations requirements and keep the Stock Exchange informed of all price sensitive information as and when they arise," the company said on clarification regarding price movement.

It added: We would like to clarify that the Company has made all the necessary disclosures from time to time and has not withheld any material information/ event that in our opinion would have a bearing on the operations/ performance of the Company which include all price sensitive information, etc. 

Vadilal has presence in over 45 countries including the countries in North and South America, Europe including the UK, the Middle East, South East Asia, and Australasia.

For the first nine months ended December 2021 (9MFY22), Vadilal Industries reported a consolidated net profit of Rs 23.01 crore as against a loss of Rs 11.19 crore in 9MFY21. Revenue from operations grew 64 per cent year-on-year to Rs 485 crore from Rs 295 crore during the same period last fiscal.

The business of Holding Company has been impacted during the nine months on account of second wave of Covid-19 and the Holding Company has witnessed lower revenues in domestic ice-cream business in April and May 2021 being the peak period of the ice-cream business. Group believes, with the support of the lenders, in its ability to continue as a going concern and meeting its liabilities as and when they fall due in the foreseeable future, Vadilal Industries said in result notes.