20 Microns at a new high

20 Microns is an exporter, manufacturer and supplier of White minerals , micronized minerals, calcined clay from Vadodara, Gujarat. The stock price hit a new high today at Rs.47, up some 15%. It has come off the high but is holding strong at Rs.44, up over 7%.

The market is extremely enthused with the Q2FY17 performance of the company. On a 13% (YoY) rise in net sales, the company posted a doubling of net profit at Rs.4 crore, up from Rs.2 crore in previous Q2. Sequentially though it is down 20%.

EBITDA came in at Rs.14 crore, up 40% and margins improved from 11.36% to 14.28%. Equity is at Rs.17.64 crore and annualizes EPS is at Rs.6 (FV of Rs.5). H1FY17 net profit is already at the levels of FY16 net profit at Rs.9.5 crore thus FY17 will end on a high note.

Its interest outgo for H1FY17 stood at Rs.12 crore and debt is around Rs.140 crore. Cash is small at Rs.10 crore.

Promoters stake as at 30th Sept 2016 stood at 50.77% but one promoter seems to be errant. With intimating the company and the other promoters, he has been selling shares since Oct. He held 5.62% stake at end of Q2, holding some 20 lakh shares. He first sold 1 lakh shares in end of Oct and now once again some 39,000 shares.