Amrit Corp hitting new highs

Amrit Corp has been hitting new highs almost every day since 10th May and the volatility in its price is mind boggling. Like today, from its yesterday’s close of Rs.738 – UC and new high, it went on to hit a new life time high at Rs.862 and is now back at Rs.823 levels.

Formerly known as Amrit Banaspati, it is now a holding company for the Amrit group. The group was restructured, with paper business demerged into a separate Company, ABC Paper, while edible oils & FMCG commodities demerged and consolidated with Amrit Enterprises Ltd. (now renamed as ‘Amrit Banaspati Company Ltd.’). Amrit Corp. now is into dairy, realty, owns the flagship Gagan brand and provides corporate strategic advisory services, commodity trading and BPO activities. Promoters total holding is 74.86% of which 8.33% is held by Amrit Agro and 35.13% by Amrit Banaspati.

A look at the segment-wise breakup of the Q4FY17 numbers shows that entire net sales of Rs.12 crore came from Dairy alone whereas at EBIT level, 82% of the profit came from its Services segment. Realty unit is loss making and dairy EBIT is at Rs.1.25 crore.

The company did well for itself in Q4Fy17. On a total income of Rs.20 crore, up 54%, the company posted a net profit of Rs.4 crore, up 220%. EBITDA was up 2 times at Rs.4 crore.

It ended Fy17 with a net profit at Rs.10.97 crore v/s Rs.10.70 crore, an increase of just Rs.20 lakh.

For the price that it commands of over Rs.800, somehow the financials do not match up as it essentially remains a company with a topline of less than Rs.50 crore and net profit just above Rs.10 crore. But what works in its favor is the tiny equity of Rs.3.21 crore and low floating stock. Reserve is healthy at Rs.172 crore.