Largest Textile Chemical Company To Expand with 18,000 MTPA Capacity Expansion for Unitop Chemicals & Rs 20 Crores for Tristar Intermediates to Boost Production by Q4 FY26
With a PE ratio of 28.7x, the company trades at a discount compared to the industry PE of 30x.
Rossari Biotech Limited announced on April 24, 2025, capacity expansions for its material subsidiaries, Unitop Chemicals Private Limited and Tristar Intermediates Private Limited. The Board of Directors of Unitop Chemicals Private Limited approved a capacity expansion of 18,500 MTPA. This expansion is planned to be implemented in a phased manner, with completion expected by the 4th Quarter of FY 2025-26. The investment required for this expansion is Rs 77 Crores, which will be funded through a mix of internal accruals and debt. The rationale behind this expansion is to accommodate new product lines, align with market demand forecasts, and enhance the company's competitive edge in both domestic and export markets.
DSIJ's ‘Mid Bridge’ service recommends well researched Mid-Cap stocks for smart investing. If this interests you, download the service details here.
In a separate but related development, the Board of Directors of Tristar Intermediates Private Limited also approved a capacity expansion. Tristar Intermediates Private Limited currently has an existing capacity of 15,000 MTPA, with a capacity utilisation of 90 per cent. The approved expansion will add 3,600 MTPA to the existing capacity. This expansion is expected to be commissioned by Q4 FY 2025-26. The investment for Tristar Intermediates Private Limited's expansion is Rs 20 Crores, and it will also be funded through a combination of internal accruals and debt. This expansion aims to upgrade existing equipment with modern technology to improve energy efficiency, product consistency, process safety, and reduce long-term maintenance costs.
Rossari Biotech was started in 2003. They are among the largest manufacturers of textile speciality chemicals in India. Their 3 main product categories are: Home, personal care, and performance chemicals, Textile speciality chemicals, Animal health and nutrition. The company has two R&D facilities, one at the Silvassa manufacturing facility and a research lab at IIT Bombay.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 512.73 crore, reflecting a YoY growth of 10.56 per cent compared to Rs 463.77 crore in December 2023. The operating profit stood at Rs 64.76 crore, marking a 1.71 per cent increase from Rs 63.67 crore in the same quarter last year. However, the profit after tax (PAT) declined by 7.82 per cent to Rs 31.70 crore from Rs 34.39 crore in December 2023.
In FY24, the company posted a revenue of Rs 1,830.56 crore, registering a 10.55 per cent growth compared to Rs 1,655.88 crore in FY23. The net profit for the year stood at Rs 130.69 crore, up 21.84 per cent from Rs 107.26 crore in the previous financial year.
With a PE ratio of 28.7x, the company trades at a discount compared to the industry PE of 30x. The company has ROCE of 18.1per cent and ROE of 13.32 per cent. Investors must keep this stock on their radar.
Market Capitalisation: Rs 3,900.93 crore
Current Price: Rs 704.60
Disclaimer: The article is for informational purposes only and not investment advice.