This Ethanol stock which deals in the business of integrated sugar company operating in sugar, bio-based chemicals, ethanol, and power was up 4 percent after the company announced a capacity expansion of 200MT.
Share Price Movement
In Saturday’s trading session, Godavari Biorefineries share price was up by 4.35 percent to the day’s high of Rs. 256.50. The stock reiterated from the day’s high and was trading at Rs. 248.50 which is 1.10 percent higher from the previous close of Rs. 245.80 per share. In the past year, the stock has had a negative return of around 20 percent and has underperformed the Nifty Index.
What Happened
The company’s stock surged after the announcement of capacity expansion to 200MT of Butylene Glycol (1.3BG) per month through debottlenecking at the Sakarwadi manufacturing plant. Godavari Biorefineries existing capacity stands at 120 MT per month and achieved 100 percent capacity utilization. The approximate value of investment required for the expansion is Rs. 6 crores and as per the company, it will be achieved through Internal Accruals. This capital expenditure plan is to cater to increasing demand and for future growth.
Financials
In its latest filing for the quarter ending September 2024, the company reported a 34.30 percent increase in revenue, reaching Rs.321 crore compared to Rs.239 crore in Q2FY24. During the same period, net loss widened to Rs.75 crore in Q2FY25, compared to Rs.65 crore in Q2FY24.
Client Base & Capex Plans
The company serves a diverse client base which includes major companies like Hindustan Coca-Cola Beverages, Hershey India, LANXESS India, and Karnataka Chemical Industries, and serves over 20 countries globally. Godavari Biorefineries expects government policy to be favorable due to better monsoon and better cane crops and this can enable them to increase sugarcane crushing capacity to be a better season moving forward and a part of is expected to reflect in the first quarter of FY26.
Company Profile
Godavari Biorefineries Limited was established in 1956. They specialize in sugar, ethanol, and bio-based chemicals while operating integrated facilities in India and serving diverse industries globally.
Written by – Santhosh S
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