This smallcap stock is trending over 3.4% as board approves fresh capex

The company plans to spend Rs 350 crore on a greenfield project.

Yasho Industries Ltd, engaged in the business of manufacturing and supplying speciality and fine chemicals, has been trending on Dalal Street as it has rallied by over 3.4%. The share has been trading in the green territory today. The scrip opened at Rs 1,885 which was also its day’s. At 1:05 pm today, the stock is trading at Rs 1,860 on the BSE.

The board has approved capital expenditure of Rs 350 crore which has boosted the rally in the stock. The capex is for the setting up of a greenfield project at Pakhajan (Dahej), Gujarat. The company aims to produce lubricant additives and rubber chemicals with a total capacity of 15500 MT per annum in phase 1 at this new facility. After the expansion, the total manufacturing capacity will more than double from 11,000 MTPA to 26,500 MTPA with a revenue potential of Rs 500 crore to Rs 550 crore at full capacity, according to its press release. The facility is anticipated to be built within 24 months after receiving all required statutory approvals. A combination of debt and internal reserves will be used to finance this capex.

Talking about its recent quarterly results, in Q3FY22, revenue grew by 77.22% YoY to Rs 163.81 crore from Rs 92.43 crore in Q3FY21. On a sequential basis, the top-line was up by 21.9%. PBIDT (Ex OI) was reported at Rs 25.67 crore, up by 146.43% as compared to the year-ago period and the corresponding margin was reported at 15.67%, expanding by 440 basis points YoY. PAT was reported at Rs 14.56 crore, up by 128.83% from Rs 6.36 crore in the same quarter for the previous fiscal year. The PAT margin stood at 8.89% in Q3FY22 expanding from 6.88% in Q3FY21.

Yasho Industries Ltd is a manufacturer and exporter of speciality and fine chemicals. Its products include aroma, antioxidants lube additives rubber and speciality range chemicals.

The stock has a 52-week high of Rs 461.15 and a 52-week low of Rs 288.85.