Up 300% in 10 months! This multibagger stock jumped 17% after strong Q3 results

Shares of Sigachi Industries Ltd surged more than 17 per cent during Saturday's special trading session after the company announced a strong set of numbers in the December 2023 quarter. The company announced its results after the trading hours on Friday.

Sigachi Industries on Friday reported a 64.05 per cent rise in its consolidated net profit on a year-on-year (YoY) basis at Rs 16.11 crore in the December 2023 quarter, compared to a net profit of Rs 9.82 crore in the year ago period. The company reported a 64 per cent rise in the operating profit at Rs 23 crore.

Sigachi's consolidated revenue from operations grew 61.47 per cent YoY to Rs 110.95 crore in the quarter ended on December 31, 2023, against a revenue from operations at Rs 68.85 crore in the corresponding period a year ago. Its operating profit margins came in around 20 per cent during the period under review.

Following the announcement of results, shares of Sigachi Industries rallied 17.35 per cent to Rs 86.69 on Saturday, hitting its new 52-week high, commanding a total market capitalization close to Rs 2,600 crore. The scrip had settled at Rs 73.87 in the previous trading session on Friday.

Sigachi has delivered a return of 295 per cent from its 52-week low at Rs 22 apiece, hit in March 2023. The stock has surged more than 65 per cent in the last one month, while it is up 175 per cent in the last six months. The counter is up about 150 per cent in the last one year.

For the nine months ended on December 31, 2023, Sigachi Industries reported a net profit of Rs 42.14 crore, up 16.4 per cent on YoY basis, compared to Rs 36.22 crore in the year ago period. Its revenue from operations rose 28.4 per cent YoY to Rs 294.83 crore in 9MFY24 from Rs 229.63 crore in the previous year.

Sigachi Industries made its debut at Dalal Street in November 2021, when the company raised Rs 125.43 crore through its initial stake sale by selling its shares in the range of Rs 16.3 per shares on an adjusted basis. The stock is currently trading more than 430 per cent above its adjusted issue price.

Incorporated in 1989, Sigachi is engaged in manufacturing of microcrystalline cellulose (MCC), used as an excipient for dosages in the pharma, food, nutraceuticals, and cosmetic industry. Shares of Sigachi Industries traded ex-split in October 2023, when the company divided its shares in 1:10 ratio. 

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