Sigachi Industries shares rise 8% to hit new highs after Q2 results

Shares of Sigachi Industries Ltd surged more than 8 per cent during the early trading session on Wednesday, after the company announced a strong performance in the quarter and half-year ended on September 30, 2023. The company shares its earnings after market hours on Monday. Sigachi Industries reported a 12 per cent rise year-on-year (YoY) in the consolidated net profit at Rs 15.15 crore for the September 2023 quarter. Its net profit came in at Rs 13.56 crore in the same quarter a year ago. On a sequential basis (QoQ), the bottomline of the company rose about 40 per cent from Rs 10.86 crore in the preceding June 2023 quarter. Sigachi's Revenue from the operations jumped over 20 per cent to Rs 99.18 crore in the second quarter of the ongoing fiscal, compared to a revenue of Rs 82.47 crore in the same quarter previous fiscal. Its operational income came in at Rs 84.70 crore in the June quarter. Following the announcement of results, shares of Sigachi Industries surged more than 8 per cent to Rs 55.90, hitting its new 52-week highs, commanding a total market capitalization close to Rs 1,700 crore. The scrip had settled at Rs 51.58 in the previous trading session on Monday. Shares of Sigachi Industries have rallied 155 per cent from its 52-week low at Rs 22 per share, hit in March 2023. The stock has soared more than 120 per cent in the last six month, while it has almost doubled in the year 2023 so far, making it a multibagger stock. Incorporated in 1989, Sigachi Industries reported a marginal rise in the net profit at Rs 26.03 crore with a revenue from operations jumping 14 per cent YoY to Rs 160.78 crore for the six months ending on September 30, 2023. Sigachi Industries' shares traded ex-split earlier this year, when the company divided its shares in 1:10 ratio. Sigachi Industries made its debut at Dalal Street in November 2021, when the company raised Rs 125.43 crore through its initial stake sale by selling its shares in the range of Rs 16.3 per shares on an adjusted basis. The stock is currently trading about 245 per cent above its adjusted issue price. Sigachi is engaged in manufacturing of microcrystalline cellulose (MCC), used as an excipient for dosages in the pharma, food, nutraceuticals, and cosmetic industry.