Vadilal Industries' m-cap doubles in 3 months, share price crosses Rs 1,000

Rally due to buoyancy created on hopes of good summer season, company's strong financials

Leading Ahmedabad-based frozen foods player, Vadilal Industries Limited, saw its market capitalisation more than double in three months, even as its share price crossed the Rs 1,000 mark on Wednesday.

Touching an all-time high of Rs 1,015 per share on BSE, Vadilal Industries closed the day at Rs 989 apiece, up by Rs 12.20 per share or 1.25 per cent over the previous close.

Vadilal Industries' market capitalisation which stood at Rs 350 crore as on December 30, 2016, rose to Rs 711 crore, a jump of 103 per cent in three months.

The company's share price rally is being attributed to the buoyancy created by expectations of good summer season and company's strong financials.

The company's margins were higher and net profit after tax grew by 34 per cent year-on-year (YoY) in the first nine months ended on December 31, 2016. Moreover, Vadilal Industries has been focusing on expanding distribution across the country, reducing debt and improve cash flow generation.