Sigachi Industries Hits 52W-High After Posting 20% Revenue Growth In Q2

Sigachi Industries is a pharmaceutical small-cap company. The most reputable producer of reliable, high-quality microcrystalline cellulose powder in India is Sigachi which was founded in 1989. It is a market leader in the supply of food additives, pharmaceutical excipients, and nutra.

It is among the largest manufacturers of microcrystalline cellulose in the world, with operations in Europe, the Middle East, Asia, Australia, and the American Continent. The company released its financial reports for the quarter that ended on September 30, 2023.

The company reported a consolidated net sales of Rs 99.17 Cr during Q2FY24 up by 20.26% YoY from Rs 82.46 Cr in Q2FY23. The company reported a net income of Rs 100.28 Cr during the quarter under review compared to Rs 84.67 Cr in the year-ago quarter or up by 18.43% YoY.

As per a regulatory filing, Sigachi Industries posted net expenses of Rs 82.06 Cr during the September 2023 quarter compared to Rs 69.45 Cr posted in the September 2022 quarter. Sigachi Industries said its consolidated net profit stood at Rs 15.11 Cr in Q2FY24 up by 11.34% YoY from Rs 13.57 Cr reported in Q2FY23.

In Q2FY24, the company acquired 2,88,00,000 equity shares for Rs. 10 each, making up 80% of Trimax Bio Sciences Private Limited's paid-up equity share capital. As of August 1, 2023, the total acquisition was Rs. 100 Crores.

Following three years, a proposal was made to purchase the remaining 20% of Trimax Bio Sciences Private Limited's paid-up equity share capital for a total of Rs. 25 Crores, or 8.5 times the EBIDTA multiples, whichever is higher, with the purchasers call option. The same subject was addressed at the board meeting on August 10, 2023.

The proposal for splitting one (1) equity share of the company, with a face value of Rs. 10, into ten (l0) equity shares, each with a face value of Re. 1, was discussed by the board during its meeting on August 10, 2023. The same was accepted at the AGM on September 7, 2023.

On Wednesday, the shares of Sigachi Industries opened on the BSE at Rs 54.89 apiece and reached a fresh 52-week-high of Rs 57.50 during the morning deals. The stock has generated a multibagger return of 104.28% and on a YTD basis, it has gained 105.18% so far in 2023.