Here's why S H Kelkar and Company share price surged 8% on Oct 4, details

SH Kelkar and Company share price: Shares of S H Kelkar and Company rose up to 8.02 per cent to hit an intraday high of Rs 310.45 per share on Friday, October 4, 2024. 

The rise came after S H Kelkar and Company reported a mixed set of business updates for the September quarter of financial year 2025 (Q2FY25).

The business sentiment remained positive, with healthy demand across various segments S H Kelkar and Company said in a statement.  The recovery of the order backlog further bolstered the company’s performance, it added. 

Notably, the core European segment achieved double-digit revenue growth despite a generally subdued demand environment in the region.

For the first half of FY2025, S H Kelkar reported consolidated revenue of Rs 1,000 crore, marking a year-on-year growth of 17.4 per cent (provisional and unaudited). 

That said, while the shift in product mix during the quarter led to a moderation in gross margins on a sequential basis, margins remained stronger year-on-year. 

However, the company is facing availability challenges with some strategic raw materials, which may result in price increases in the upcoming quarters, even as overall supply conditions stay stable. 

On the balance sheet front, net debt increased to R 596 crore as of September 30, 2024 (provisional and unaudited), largely due to ongoing inventory replenishment. 

The company claimed that it continues to generate strong cash flows, which are expected to enhance the balance sheet moving forward. 

Additionally, S H Kelkar has submitted a claim to its insurance company and anticipates partial payment in the coming quarter to aid in debt reduction and the refurbishment of the Vashivali plant.

S H Kelkar and Company, founded in 1955, is among the  leading manufacturers and exporters of fragrances, flavours, and aroma ingredients. 

As the largest domestic fragrance producer in India, the company offers a diverse range of products under well-known brands such as SHK, Cobra, Auris, Wheel, Three Birds, and Keva. 

Additionally, S H Kelkar provides research and testing services across various fields, including biotechnology, microbiology, cosmetics, and custom synthesis, showcasing its commitment to innovation and quality.

At 11:40 AM, shares of S H Kelkar were trading 6.84 per cent higher at Rs 307.05 per share. In comparison, BSE Sensex was trading 0.26 per cent higher at 82,715.31 levels.