Shares in Rossari Biotech surged over 5% on the NSE in today's trade (September 3, 2020) to its highest price of Rs.859 since its listing on July 23. This is after Plutus Wealth Management LLP bought 3 lakh equity shares of the company at a price of Rs. 773.82 apiece.
After today's gain, the counter of Rossari Biotech has more than doubled in price in comparison to its IPO issue price of Rs. 425.
For the specialty chemicals manufacturer, the brokerage house Motilal Oswal maintains a 'buy' call. "It has strong potential given robust financial performance, lean balance sheet and doubling of capacity over next one year which will drive future growth," the brokerage firm said.
In the April-June quarter, Rossari Biotech's revenues from operations came in at Rs 109.5 crore in comparison to Rs 127.8 crore in the corresponding quarter a year-ago. The company's EBITDA came at Rs 23.7 crore as compared to Rs. 22.3 crore in the first quarter of FY20. While profit after tax was at Rs 15.5 crore as against Rs 14.2 crore in the same quarter of last fiscal.
In July 2020, the company raised Rs. 50 crore via issuance of fresh equity and earlier in February mopped up Rs. 100 crore via pre-placement of equity with institutional investors.
The company's line of products caters to varied segments including home, personal care, specialty chemicals for textile, animal health and nutrition products.