Chemical stock jumps 11% after reporting 1028% QoQ increase in profits

A prominent starch manufacturer, renowned for its three-decade legacy in producing premium corn derivatives and modified starches, has reported remarkable financial performance in its latest quarterly results. The company showcased an impressive 1,028% surge in profits, despite volatility in maize prices.

Share Price Movement 

The share price of  Tirupati Starch & Chemicals Limited went up 11.2 percent to Rs. 205 per share on Monday, an increase from its previous close of Rs. 184.35 per share. The market capitalisation now stands at approximately Rs. 184.3 crore as of February 10, 2025.

Financial Highlights

In Q3FY25, the company reported revenue of Rs. 99.21 crore, reflecting a 14.3% YoY growth from Rs. 86.79 crore in Q3FY24 but a 3.9% QoQ decline from Rs. 103.27 crore in Q2FY25. Net profit surged to Rs. 7.41 crore in Q3FY25, a 601% YoY increase from Rs. 1.06 crore in Q3FY24 and a significant rebound of 1,028% QoQ from Rs. 0.66 crore in Q2FY25.

Recent Update 

The Board of Directors has approved the proposed amendment to the Company’s Memorandum of Association (MOA) to set up power generation facilities for internal use, utilising both conventional (thermal, hydel, nuclear) and non-conventional (tide, wind, solar, geothermal) energy sources, including the operation and maintenance of energy generation and distribution facilities.

Also read: IT stock hits upper circuit after signing ₹10,000 Cr MoU with Maharashtra Govt

Competitors 

Top competitors of Tirupati Starch & Chemicals include Gujarat Ambuja Exports, Kaveri Seed Company, Venky’s (India), Sanstar, Bombay Super Hybrid, Gulshan Polyols, and Sukhjit Starch.

Tirupati Starch & Chemicals is currently trading at a P/E of 28.64, which is above the industry P/E of 17.93.

Market Outlook

The corn starch industry is set for significant growth, with a CAGR of approximately 6 to 8 percent, driven by increasing demand for natural and sustainable ingredients. Its applications span food, pharmaceuticals, textiles, and other industries. Export opportunities are rising, with Indian products priced 10 to 15 percent lower than global rates.

Rapid industrialisation and government incentives further fuel expansion. However, maize price volatility with 20 to 30 percent fluctuations annually and intense competition pose challenges. Strategic market expansion and cost efficiencies position key players for sustained success.

Written By Fazal Ul Vahab C H

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