Capex plans & interest of marquee investors become new dawn for stock
Acrysil Limited is engaged in the manufacturing of composite Quartz sinks. The company started its operations after a technical collaboration with Schock & Co. of Germany and has become one of the largest manufacturers of Quartz sink in Asia. It is also into manufacturing of stainless steel kitchen sinks with a core focus on Quadro sinks and also, deals in a complete range of built-in kitchen appliances under its own ‘Carysil’ brand, having varieties of kitchen chimneys, dishwashers, cook-tops, built-in ovens, wine-chillers, etc.
The stock has recently come up with its quarterly numbers wherein, it clocked a revenue of Rs 87.5 crore for Q3FY21. The company reported a profit of Rs 12.1 crore in Q3FY21. The domestic business for Q3FY21 stood at Rs 18.1 crore, contributing 21 per cent of the total revenue. The export business contributed 79 per cent of the total revenue in Q3FY21, which stood at Rs 69.3 crore.
Further, the company has announced that it will be expanding the production capacity of Quartz kitchen sinks by another 1,00,000 units at its Bhavnagar plant in Gujarat. The proposed Capex will increase the manufacturing capability of Quartz kitchen sink to 7,00,000 units per annum. The purpose of the expansion is to meet the increasing demand of Quartz kitchen sink in the international and the domestic market. The proposed Capex would involve investments in land & building, plant & machinery, and other infrastructure. The total capital expenditure envisaged is approximately Rs 30 crore. The expansion project is likely to be commissioned by June 2021. The Capex will be financed by a mix of internal accruals and debt.
As per the updated shareholding pattern of the public shareholder, it has been observed that marquee investors have invested in this stock. A few of the notable marquee investors include Sunil Singhania (Abakkus Fund), Ashish Kacholia, and Varun Daga, who hold 6.45 per cent, 4.14 per cent, and 2.65 per cent, respectively in this stock.
The stock closed at Rs 208.40, up by 4.99 per cent on February 05, 2021 on NSE.