Small-cap stock below ₹10: Shares of smallcap stock Davangere Sugar Company surged over 10 per cent on Monday, January 20 after the company posted strong results for the quarter ended December 2024 (Q3FY25).
As per the company’s exchange filing, financial results for the quarter ended December 31, 2024, showed notable growth compared to the preceding quarter ended September 30, 2024.
The company’s net profit rose over 20 per cent to ₹6.76 crore in the quarter under review versus ₹5.61 in the year-ago period. Sequentially, the profit jumped a massive 428 per cent from ₹1.28 crore in the September quarter (Q2FY25).
Total income declined on a YoY basis to ₹73.58 crore in Q3FY25 from ₹78.83 crore in the year-ago period, however, on a QoQ basis, it climbed significantly, 85 per cent from ₹39.77 crore. EBITDA for the third quarter stood at ₹18.2 crore for the third quarter, a 14 per cent increase YoY.
Total expenses also increased to ₹66.12 crore, up from ₹37.98 crore in the September quarter, largely due to higher material costs and other expenses.
Meanwhile, for the nine months ending December (9MFY25), the company’s profit came in at ₹9.85 crore, down from ₹14.45 crore in the same period last year. Revenue also declined to ₹157.52 crore in the period under review from ₹222.9 crore in 9MFY24.
Stock Price Trend
The penny stock rose as much as 10.4 per cent to its day’s high of ₹6.46. It is still 43 per cent away from the 52-week high of ₹11.35, hit in February 2024. Meanwhile, it has climbed 29 per cent from its 52-week low of ₹5, recorded last week on January 13, 2025.
Other Developments
In September 2024, the Davangere Sugar Company announced plans for a rights issue of shares, approved by its board, to raise ₹400 crore. The proceeds are earmarked for enhancing ethanol production capacity and related infrastructure.
As part of its commitment to ensuring a stable raw material supply and community welfare, the company has undertaken the planting of over 15,000 acres of sugarcane, providing subsidies for plantations and additional financial aid to farmers.
Davangere Sugar Company operates a new plant that includes a sugar factory with a capacity of 6,000 TCD, an ethanol distillery producing 65 KLPD, and a co-generation power plant with a capacity of 24.45 MW. The company also has five sugar storage units, each with a capacity of 60,000 tonnes, ensuring efficient storage and distribution.
