Sharda Cropchem locked on 20% UC

Sharda Cropchem is mainly a trader – buying and distributing agro chemical products, dyes and intermediaries and other such chemicals. Its business model is such that it sources these chemical products from places like China and sells it in Europe and other countries. The company’s strength lay in its ability to get the products registered in Europe.

The stock is today locked on the 20% UC at Rs.348.65, clocking some 18 times surge in volumes. The stock’s 52-week high is at Rs.369.90.

The company has posted an excellent set of numbers for Q4FY16. The company’s net sales for the quarter rose 54% (YoY) at Rs.524 crore. Costs rose 38% mainly on the back of 165% rise in raw material costs. Operating profit was at Rs.142 crore, up 118%. Other income of Rs.14 crore, through forex gain helped boost the bottomline. Tax rose 96% and it ended Q4FY16 with a net profit at Rs.106 crore, up 2.2 times. Its agrochem vertical showed a 115% rise in EBIT and the belt vertical showed a 4 times jump in EBIT.

The company ended FY16 with a 42% rise in net profit at Rs.175 crore on a 15% jump in net sales at Rs.1218 crore. Equity was at Rs.90 crore and EPS for the year was at Rs.19 (FV of Rs.10/share).