Baroda Extrusion Hits 10% Upper Circuit After Reporting 1652% QoQ Net Profit Surge
Stock Soars on Strong Q3 FY25 Results
Shares of Baroda Extrusion Limited, a leading manufacturer of copper finished goods and extrusion products, surged by 10% on the Bombay Stock Exchange (BSE) on Friday. The rally came after the company posted a massive 1652% quarter-on-quarter (QoQ) increase in net profit for the third quarter of FY25.
With a market capitalization of ₹126.5 crores, Baroda Extrusion’s stock opened higher at ₹8.49 per share, compared to the previous close of ₹7.72, hitting the upper circuit limit.
Stock Performance Overview
- 1-Year Performance: The stock has delivered impressive returns of 85.4% in the last year.
- 6-Month Performance: Despite the recent rally, the stock has experienced a minor dip of 2% in the last six months.
Financial Highlights – Q3 FY25
Baroda Extrusion reported a significant growth in revenue and profitability, marking a strong turnaround for the company.
| Financial Metrics | Q3 FY25 | Q2 FY25 | QoQ Growth | Q3 FY24 | YoY Growth |
|---|---|---|---|---|---|
| Revenue from Operations (₹ Cr.) | 44.5 | 35.7 | +24.6% | 29.0 | +53.4% |
| Net Profit (₹ Lakhs) | 87.6 | 5.0 | +1652% | -5.7 | Profitable Turnaround |
| Profit After Tax (PAT) (₹ Lakhs) | 87.6 | 5.0 | +1652% | -5.7 | Profitable Turnaround |
This impressive performance highlights strong operational efficiency and improving financial health, as the company bounced back from previous losses.
What’s Driving the Growth?
The surge in profitability and stock price can be attributed to:
- Robust Revenue Growth – The company’s revenue increased 24.6% QoQ and 53.4% YoY, signaling strong demand for its products.
- Cost Optimization & Operational Efficiency – Effective cost control measures have significantly improved the company’s profitability.
- Industry Tailwinds – With rising demand for copper-based products, Baroda Extrusion is well-positioned to capitalize on the growth in the sector.
About Baroda Extrusion Limited
Established in 1991, Baroda Extrusion Limited is engaged in the manufacturing of copper extrusion products and the trading of ferrous and non-ferrous metals. The company’s manufacturing plant has an installed capacity of 6000 metric tons per annum (MTPA).
Key Financial Ratios & Stock Metrics
The company’s latest financial ratios indicate areas of strength and challenges:
| Metric | Value |
|---|---|
| Market Cap | ₹127 Cr. |
| Current Price | ₹8.49 |
| 52-Week High/Low | ₹15.00 / ₹3.55 |
| Stock P/E | – |
| Book Value | ₹-2.63 |
| Dividend Yield | 0.00% |
| Return on Capital Employed (ROCE) | -6.20% |
| Return on Equity (ROE) | – |
| Debt to Equity Ratio | – |
| Debt | ₹58.4 Cr. |
| Industry P/E | 18.3 |
| Piotroski Score | 4.00 |
Despite the positive earnings growth, certain financial indicators such as negative book value and high debt levels suggest areas where the company needs to strengthen its financial foundation.
Future Outlook & Investment Perspective
The sharp increase in net profit and revenue growth paints a promising picture for Baroda Extrusion Limited. However, investors should be cautious about the company’s debt levels and negative book value, which could impact long-term sustainability.
Key factors to watch:
- Consistency in profitability and revenue growth
- Debt reduction strategies to strengthen financial stability
- Broader industry trends in the metal sector
Conclusion
Baroda Extrusion’s stock hitting the 10% upper circuit reflects investor confidence in its strong Q3 FY25 performance. With a 1652% increase in net profits and 53.4% YoY revenue growth, the company has shown remarkable improvement. However, investors should evaluate financial risks like high debt and negative book value before making long-term investment decisions.
The stock remains one to watch in the copper and extrusion products industry, as it continues its growth trajectory.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.