Vishwaraj Sugar Industries shares jump 21% in two sessions; here's what pushing the stock up

Shares of Vishwaraj Sugar Industries extended their gains to a second straight session on Monday after the company reported a strong performance in the period that ended on March 31, 2022. However, the company reported a net loss after adjusting for the deferred tax.

Vishwaraj Sugar reported a 52 per cent jump in revenue from operations on a year-on-year (YoY) basis to Rs 199 crore for the quarter that ended on March 31, 2023, against an operational revenue at Rs 130 crore in the year-ago period. The company clocked an EBITDA of Rs 13.10 crore and a profit of Rs 2.94 crore.

However, its net loss for the period stood at Rs 46.05 crore for the quarter ended March 2023. The company announced its earnings at the later end of the trading session on Friday.

The scrip extended its gains by more than 8 per cent to Rs 19 on Monday. On Friday, the counter surged more than 17 per cent from its day's low at Rs 15.76 to Rs 18.45 before settling at Rs 17.38. The stock has surged about 21 per cent in the two sessions as the smallcap sugar player commands a market capitalization of about Rs 340 crore.

The company's revenue from operations rose 32 per cent to Rs 616 crore for the entire year 2022-23, compared to the revenue from operations at Rs 469 crore in the year-ago period. Profit before tax came in at Rs 25.54 crore for the year, with an EBITDA of Rs 69.06 crore. It clocked a net loss of Rs 23.44 crore for the entire year.

Incorporated in the year 1995, Vishwaraj Sugar Industries is an integrated sugar and other allied products manufacturing company operating from Belgaum District in the State of Karnataka. The company operates a single-location sugar unit having a licensed crushing capacity of 11,000 TCD.

In addition to sugar, the company also manufactures other allied products like rectified spirits, extra-neutral spirits, natural alcohol vinegar, compost, carbon dioxide and is also engaged in the generation of power from bagasse, a byproduct of the sugar industry, for captive consumption as well as external sale.

Also read: ICICI Lombard shares rally 14% as ICICI Bank to increase stake. Motilal sees stock at Rs 1,400

Also read: BHEL shares at Rs 34 or Rs 85? Here’s are new stock target prices post Q4 results