Congress may Rejig Senior Positions in Party

NEW DELHI: After an unexpected performance by...

India-Russia: The balance of power

Even as India tries to move away...

Speaking truth to power is the greatest tribute to George Orwell

Orwell’s ideas remain profoundly relevant across various...

EID Parry stock may perform well in the next one year

NewsEID Parry stock may perform well in the next one year

Founded in the year 1900, the Rs 54,722 crore Murugappa Group is one of the country’s leading business family house. The group has 29 businesses including 10 listed companies trading on the Indian stock exchanges. The major companies of the group include Carborundum Universal, Cholamandalam Financial Holdings, Cholamandalam General Insurance, Coromandel International, Coromandel Engineering, Shanti Gears, Tube Investment of India, TI Financial Holdings, Wendt India, CG Power, EID Parry India and Parry Agro. The companies of the group serves industries such as sugar, plantations, abrasives, auto components, cycles, farm inputs, fertilisers, transmission systems, nutraceuticals, etc. EID Parry India Ltd is engaged in the business of sugar and Nutraceuticals. The company was founded in 1788 and has the distinction of setting the country’s first sugar plant in the year 1842 at Nellikuppam. Currently the company has 9 sugar plants spread across South India with a sugar cane crushing capacity of around 43000 TCD. EID Parry is a world leader in organic spirulina and Micro algai products in the nutritional space and being sold in over 40 countries around the world. The raw sugar futures price recently reached the sentimental 21 cents per pound levels in February 2023 inching closer towards the 6 year peak of 21.86 cents per pound on the back of pent up demand from China due to easing of Covid restrictions, expected drop of 7% production in India, stronger Brazilian currency discouraging exports and the pesticide ban in Europe. Because of the roughly 8% increase in cane volumes, Brazil is expected to export 28.2 million tonnes. While despite a drop in sugar volumes to 340 lakh metric tonnes, the diversion to ethanol is pegged at 45 lakh metric tonnes as against 35 lakh metric tonnes as of last year. Despite the higher diversion of ethanol in the country, the sugar association estimates a higher increase in production. The company’s Q3FY23 performance has seen reduced profitability on account of increase in coal prices and reduction in distillery production. The Q3FY23 revenue stood at Rs 727 crore registering a growth of 6% as against Rs 686 crore in the corresponding quarter of the previous year. The EBITDA for the quarter was Rs 63 crore as against Rs 72 crore in the previous quarter of last fiscal. PAT for the quarter stood at Rs 16 crore as against Rs 18 crore. The company has commissioned a green field distillery and 2 new facilities which are expected to be commissioned soon. Analysts expect the EID Parry stock to do well in the next one year time frame on the back of higher realisation and softening raw material costs improving the margins.
Rajiv Kapoor is a share broker, certified mutual fund expert and MDRT insurance agent.

- Advertisement -

Check out our other content

Check out other tags:

Most Popular Articles