DCW Ltd

The company was in news yesterday, with the stock price spiking up over 9% after it announced that it had allotted 48.80 lakh equity shares at Rs 23 per share and also 26.12 lakh convertible warrants at an issue price of Rs 23 per warrant to promoters and business associates on preferential allotment basis. Currently, promoters hold 48.15% stake.

This 76 year old company, formerly Dhrangadhra Chemical Works Ltd, makes chemicals -  soda ash, Sodium Bicarbonate & Ammonium Bicarbonate, Caustic Soda, Liquid Chlorine, Hydrochloric Acid,  Beneficiated ilmenite,  Trichloroethylene,  Yellow Iron Oxide, Ferric Chloride,  Utox & PVC.

Its performance for Q2FY16 was very good. It posted a 10% (YoY) rise in net sales at Rs.348 crore. Other income more than doubled to Rs.1.5 crore and costs as a percentage of total income came down from 98% to 94%. EBITDA stood at Rs.38 crore, double from Rs.19 crore (YoY). Margins improved to 10.92% from 5.99%. It ended the quarter with a net profit of Rs.5.58 crore, up 110%. It ended H1FY16 with a net profit of Rs.15 crore v/s a loss of Rs.6 crore in FY15 and Rs.10 crore profit in H1FY15. The company’s debt as at 30th Sept 2015 stands at Rs.680 crore.