Pondy Oxides at a new high

Pondy Oxides, from a closing of Rs.37 yesterday, it opened stronger today at Rs.38 and went on to hit a new high at Rs.41.90 and currently remains around Rs.39 levels, up over 6%.

This company is one of India's leading metallic oxides and plastic additives producers. It has broad based operations, manufacturing of Zinc oxide, Lead sub Oxide, Litharge Red lead and solid and liquid stabilizers of PVC.  This spike up in the stock price is on account of its very good numbers for Q1FY15. Based on a robust growth in net sales and operating cost eating away lesser of the topline, the company posted a net profit at Rs.2 crore, up 153% (YoY). Net sales for the quarter rose Rs.112 crore, up 26% and operating cost, as a percentage of net sales was at 96% compared to over 99% in previous Q1.  The profit for current quarter is almost equal to the Rs.3 crore posted for entire FY14, which means the company has a big year ahead, given the three  more quarters.

Equity stands at Rs.11.15 crore and EPS (Rs.10 face value) is at Rs.1.80 compared to Rs2.52 posted for FY14. Promoters stake is at 51.99% and there is no FII stake. Market cap stands at Rs.44 crore.