Shares of Pondy Oxides and Chemicals (POCL), India’s leading recycling and manufacturing company, hit a new high of Rs 1,735, as they rallied 17 per cent on the BSE in Monday’s intra-day trade amid heavy volumes. In the past two trading days, the stock price of this smallcap company has surged 28 per cent.
Since July 22, in the past four weeks, the market price of Pondy Oxides and Chemicals has nearly doubled or zoomed 98 per cent after posted an outstanding financial results for June 2024 quarter (Q1FY25). Thus, the company has embarked on the fiscal year with a positive momentum.
Investor, Dolly Khanna owns 170,974 equity shares or 1.31 per cent stake in POCL at the end of Q1FY25, the shareholding pattern data shows. Among other investors, Sangeetha S (230,000 shares or 1.77 per cent stake) and Ramesh Shantilal Tolat (148,714 shares or 1.14 per cent stake) were holding more than 1 per cent stake in the company.
In Q1FY25, the company’s consolidated profit after tax (PAT) increased by 216 per cent year-on-year (YoY) at Rs 13 crore. Consolidated revenue from operations grew to Rs 445 crore, up 37 per cent and 23 per cent on YoY and sequential basis. The company said it experienced this substantial growth as a result of increased production, sales, and realizations in both Lead and Plastics.
Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) increased by 76 per cent to Rs 24 crore on YoY basis. EBITDA margins improved to 5.4 per cent from 4.4 per cent in Q1FY24.
The factors driving growth include capacity expansion, a comprehensive capital expenditure strategy, improved operational efficiencies, a strong balance sheet, strict implementation of government norms like Battery Waste Management Rules (BWMR) and Extended Producers Responsibility (EPR), the management said.
POCL has laid a clear target which includes capacity expansion of existing verticals (Lead) and diversification into new verticals (Lithium-ion); having volume growth 15 per cent plus; revenue CAGR and profitability growth of 20 per cent plus; EBITDA margins 8 per cent plus; ROCE 20 per cent plus; value-added products 60 per cent plus; 20 per cent plus reduction in energy consumption to reduce carbon footprints.
Meanwhile, the company’s board approved stock split in the ratio of 1:1 i.e. sub-division/split of existing equity share of the company from 1 equity share having face-value of Rs 10 each, into 2 equity shares having face value of Rs 5 each.
The rationale behind stock split is to enhance the liquidity of the company’s equity shares and encourage the participation of small investors by making it more affordable.
POCL has a diverse procurement base and a customer network in India and across the globe. It has brand approvals from all the major battery manufacturers, a diverse portfolio in customized alloys, extensive Land Bank, and advantage of strategic locations with respect to proximity to ports.
Currently POCL is in the process of expanding its capacity in Lead, Lead Alloys, and other non-ferrous metals. POCL is committed to adding value for every stakeholder by consistently enhancing its processes, investing in new machinery, and upgrading technology to meet international standards.
First Published: Aug 19 2024 | 2:24 PM IST
