Zuari Agro had breached the 20% UC yesterday, hitting a new high at Rs.591.40 and today too, it has gone on to hit a new high at Rs.689.45 and remains very firmly in the green.
The company yesterday reported a four times surge in net profit at Rs.53 crore for Q2FY18 v/s Rs.13 crore (YoY). This rise in bottomline was on the back of a 24% rise in total revenue at Rs.1347 crore. Lower raw material prices led to a 400 bps surge in operating profit margins.
Post this performance, Edelweiss has put out a report stating that it has maintained the “buy” call on the stock, hiking the target price from Rs.218 to Rs.278. This is based on good monsoon to support near-term growth, fall in receivables and debt due to receipt of Govt subsidy and implementation of gas price pooling policy, improved plant utilisation, better working capital management and lower interest costs.