This Dolly Khanna-owned stock has zoomed 263% in 3 month; stock at new high

Shares of Pondy Oxides and Chemicals were locked in upper circuit of 10%, after hitting a new high of Rs 2,173.90 on the BSE on Wednesday at 11:09 AM, in an otherwise weak market.

Shares of Pondy Oxides and Chemicals (POCL) hit a new high of Rs 2,173.90 and froze at 10 per cent upper circuit on the BSE on Wednesday at 11:09 AM, in an otherwise weak market.
 

The stock of India’s leading recycling and manufacturing company is trading higher for the fourth straight day, surging 22 per cent during the period. In the past three weeks, the company's stock has rallied 60 per cent, while the market price of POCL has zoomed 263 per cent in the past three months.

POCL is one of the largest recyclers of non-ferrous metals and a leading manufacturer of lead and lead alloys. Currently POCL is in the process of expanding its capacity in lead, lead alloys, and other non-ferrous metals.

To enhance the liquidity of the company's equity shares and encourage the participation of small investors by making it more affordable, POCL’s board on August 8 approved a stock split in the ratio of 1:1, that is, the sub-division, or split of existing equity share of the company from one equity share having a face value of Rs 10 each, into two equity shares having a face value of Rs 5 each.

Investor Dolly Khanna owned 170,974 equity shares, or a 1.31 per cent stake, in POCL at the end of June 2024 quarter (Q1FY25), the company's shareholding pattern data showed.

Among other investors, Sangeetha S. (230,000 shares, or 1.77 per cent stake), and Ramesh Shantilal Tolat (148,714 shares, or 1.14 per cent stake) held more than 1 per cent stake in the company.

Meanwhile, since July 22, the market price of POCL has soared 135 per cent in the past four weeks after the company posted outstanding financial results for Q1FY25. 

In Q1FY25, the company’s consolidated profit after tax (PAT) increased by 216 per cent year-on-year (Y-o-Y) to Rs 13 crore. Consolidated revenue from operations grew to Rs 445 crore, up 37 per cent Y-o-Y and 23 per cent on sequential basis.

The company said it experienced this substantial growth as a result of increased production, sales, and realizations in both Lead and Plastics segments.

Consolidated earnings before interest, tax, depreciation and amortization (Ebitda) increased by 76 per cent to Rs 24 crore on Y-o-Y basis. EBITDA margins improved to 5.4 per cent from 4.4 per cent in Q1FY24.

The company’s growth strategy is supported by its extensive global supply chain network, strategically located units in India with proximity to ports, and further complemented by implementation of regulatory frameworks initiated by the government, including the Battery Waste Management Rules (BWMR) and Extended Producer Responsibility (EPR) mandates, which are set to increase the domestic availability of scrap raw materials.

Over the next five years, the metal recycling market is projected to expand to $768 billion by 2029, from $552 billion in 2024, reflecting a robust CAGR of 6.8 per cent.

This growth is expected to be driven by increasing industrial demand for sustainable raw materials, cost efficiencies, stringent environmental regulations, and advancements in technology, POCL said in its FY24 annual report.

Further, the company has signed an MoU with the Tamil Nadu state government, laying the groundwork for the establishment of advanced recycling and manufacturing facilities in the state. These facilities will focus on non-ferrous metals, lithium-ion battery recycling, e-waste and plastics, along with dedicated R&D centres for developing value-added products.

This strategic initiative is expected to boost both the top- and bottom-line growth of the company significantly, POCL said.

Meanwhile, according to a Business Standard report, the environment ministry is likely to soon issue regulations that will mandate automakers to recycle a specified percentage of steel from old vehicles, starting from the next financial year.

Government officials recently held a meeting with members of the Society of Indian Automobile Manufacturers (Siam). The final regulations are likely to be issued in the next 10 days, the newspaper reported, citing a government source.

The move, according to government officials, is a step towards 'formalising' vehicle scrapping in the country and making automakers 'active stakeholders' in the broader policy against air pollution. CLICK HERE FOR FULL REPORT