This smallcap cylinder manufacturing company has hit a 5% upper circuit!

This smallcap cylinder manufacturing company has hit a 5% upper circuit!

by 5paisa Research Team Last Updated: 2022-04-23T18:53:57+05:30

The company’s joint venture agreement has led to a bullish trend.

Everest Kanto Cylinder (EKC) Ltd, primarily engaged in the business of manufacturing cylinders, has been trending on Dalal Street as it has rallied by about 5% and thereby hitting the upper circuit from its previous close of Rs 200.70. The share has been trading in the green territory today. The scrip opened at Rs 204.50 and within a couple of minutes it hit the upper circuit and the trading has been halted at Rs 210.70.

Such a bullish trend in the stock was seen on the back of the company’s subsidiary- EKC International FZE (Dubai) entering into a joint venture agreement with Saad Eldin Group, Egypt. With this joint venture, EKC aims to become a market leader in manufacturing cylinders in the Middle East and North Africa (MENA) region by 2026 considering the huge growth opportunities in the region.       

Talking about its recent quarterly results, in Q3FY22, revenue grew by 87.8% YoY to Rs 463.89 crore from Rs 247.01 crore in Q3FY21. On a sequential basis, the top-line was up by 10.12%. PBIDT (Ex OI) was reported at Rs 97.31 crore, up by 95.87% as compared to the year-ago period and the corresponding margin was reported at 20.98%, expanding by 87 basis points YoY. PAT was reported at Rs 60.14 crore, up by 17.67% from Rs 51.11 crore in the same quarter of the previous fiscal year. The PAT margin stood at 12.96% in Q3FY22 contracting from 20.69% in Q3FY21. 

EKC is engaged in the business of manufacturing industrial and CNG cylinders. It manufactures industrial cylinders for oxygen, hydrogen, nitrogen, argon, helium, air, etc. along with CNG cylinders required in three-wheelers, buses and delivery vehicles. It also manufactures beverage cylinders and accumulators. The stock has a 52-week high of Rs 291.15 and a 52-week low of Rs 84.70.

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