1st Ever 1:2 Stock Split: Record Date To Be Declared Soon: Should You Leverage This Opportunity?

Established in 1943, Sukhjit Starch & Chemicals Ltd is a firm focused on agro-processing, manufacturing starch and related byproducts. Sukhjit Starch & Chemicals Ltd. has a long history of being one of the largest and oldest starch producers in India. It has developed strong relationships with well-known companies and end consumers. Starch, Dextrines, Liquid Glucose, HMS, Malto-Dextrin, Mono-Hydrate Dextrose, Anyhydrose Dextrose, Sorbitol-70% Solution, and a variety of by-products are among the company's varied product offerings, which serve a broad range of industries. The products are utilised in many different commercial and industrial applications, including FMCG, textile, personal care & pharmaceuticals, food & beverages, paper & board, and animal and pet foods.

Sukhjit Starch & Chemicals Stock Split

"Subject to the approval of the Shareholders of the Company through Postal Ballot process, in accordance with the provisions of Section 110 of the Companies Act, 2013, the Board has considered and approved the split / sub-division of the existing equity shares of the Company having face value of Rs.10/- per share fully paid-up into 2 (two) equity shares of face value of Rs. 5/- per share and accordingly to amend Clause V of the Memorandum of Association of the Company," said Sukhjit Starch & Chemicals in a regulatory filing.

Sukhjit Starch & Chemicals Q1 Results

Revenue from Operations for Q1FY25 was Rs. 389.83 crs, up from Rs. 322.18 crs in Q1FY24, a 21% increase over the same period last year. Comparing Q1FY25 to Q1FY24, EBITDA was Rs. 32.04 crs vs Rs. 28.84 crs. Compared to Rs. 13.04 in Q1FY24, net profit after tax was Rs. 13.61 crs in Q1FY25.

Mr. K.K.Sardana, Managing Director said, "We are pleased to report our Q1 results, showcasing a significant revenue growth of 21% year on year. This impressive performance is primarily driven by a robust increase in volumes across our product lines. Our strategic initiatives aimed at expanding market reach and enhancing customer engagement have contributed significantly to this growth. We are also witnessing a notable increase in rural demand within the FMCG sector. Furthermore, global opportunities are increasing due to new environmental regulations in China, which are opening avenues for export growth."

"We also expect improved margins due to stabilized product sale prices and favorable rates for maize (our basic raw material), thanks to the positive monsoon forecast from the IMD. To support this growth, we plan to expand our capacity by 1,000 tons over the next three years, bringing our total capacity to 3,000 tons. This strategic expansion will drive sustained volume growth and enhance our market position in the maize processing industry," he added.

"Built on a strong foundation and driven by a forward-looking strategy, we are exceptionally positioned to seize emerging opportunities and drive sustainable growth in the coming years. Our dedication to innovation, quality, and customer satisfaction remains at the core of our success, creating lasting value for our stakeholders. We are confident that our strategic initiatives will equip us to effectively navigate the ever-evolving market landscape and achieve our ambitious goals," K.K.Sardana commented.

Sukhjit Starch & Chemicals Share Price Target

"Wet corn milling company Sukhjit Starch & Chemicals Ltd.'s current price range suggests the possibility of more dips. While its RSI readings of 51 on the daily, 54 on the weekly, and 56 on the monthly timeframes are moderate, they suggest the possibility of more dips. Those who wish to leverage this opportunity can tap the fresh buying range of Rs. 450-465 for a target price of Rs. 500-750. For this stock, I recommend a holding period of 1-5 months and setting the stop loss at Rs. 415 to protect gains," advised V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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