Galaxy Surfactants shares zoom 8% to hit 52-week high on heavy volumes

Galaxy Surfactants anticipates volume growth to remain within their projected range of 6-8 percent, as global demand shows signs of gradual improvement.

Shares of Galaxy Surfactants zoomed over 8 percent on September 16 to hit a 52-week high of Rs 3,325 on the National Stock Exchange (NSE), driven by high volumes. So far in the day, a total of 1 lakh shares of the company changed hands on BSE and NSE combined, compared to the monthly average trading volume of 27,000 shares.

The Specialty chemicals major reported a net profit of Rs 79.7 crore in the quarter ended June 2024, up 6 percent (YoY). Its Earnings before interest tax depreciation and amortisation at Rs 129.5 crore grew 3 percent YoY and EBITDA margins at 13.2 percent remained stable. The company's revenues at Rs 979.5 crore grew 3 percent on-year.

After the Q1FY25 earnings report, K. Natarajan, Managing Director, Galaxy Surfactants said that there are visible signs of improving demand for our premium specialties, which should improve the company's overall profitability.

Specialty chemical manufacturers have seen their performance impacted by weak demand and inventory destocking cycle during FY24. Natarajan said that demand across geographies has improved.

Galaxy Surfactants has been grappling with significant logistical challenges, largely driven by ongoing global disruptions which impacted both the arrival of raw materials and the dispatch of finished goods, resulting in longer lead times and rising freight costs.

The company anticipates volume growth to remain within their projected range of 6-8 percent, as global demand shows signs of gradual improvement.

At 12:47 pm, Galaxy Surfactants shares were trading over 8 percent higher at Rs 3,300 on the NSE. The stock has rallied 19 percent so far this year, outperforming Nifty's returns of 14 percent. In the past 12 months, the counter has zoomed 23. In comparison, Nifty rose 28 percent during this period.

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