Here's why stock of this smallcap electrode maker hit 20% upper circuit

So far this year, shares of De Nora India rallied over 26 percent, outperforming 10 percent rise in the benchmark Nifty 50 index

Shares of De Nora India soared 20 percent to hit an upper circuit of Rs 2,007.6 apiece on July 2 after it bagged an order worth Rs 38.71 crore from Nuclear Power Corporation of India for refurbishment of 4 seawater electrochlorination systems.

Italy-based De Nora company supplies technology for production of chlorine, caustic soda, and derivatives for the Chlor-alkali industry. It also helps in installation and operation of electrodes - the electrical conductors used to run electrochemical processes.

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In an exchange filing, the company stated that they have to supply 12 assembled seaclor electrolysers, 4 CS fabricated skid complete with FRP or GRS junction box. They will also dismantle, install, commission 4 set of electrolysers and skids supplied to Nuclear Power Corporation of India.

The supply is estimated to be complete within 24 months from the date of procurement order.

In the March-ended quarter, De Nora India's net profit declined by 54 percent year-on-year (YoY) to Rs 5.66 crore, as against Rs 12 crore in the year-ago period. Sales also dipped by 41 percent YoY to Rs 16.18 crore in Q4FY24 versus Rs 27.63 crore in Q4FY23.

For the full year, the company's net profit dropped by 6 percent YoY to Rs 19 crore, whereas sales rose by 0.3 percent YoY to Rs 73 crore.

So far this year, shares of De Nora India rallied over 26 percent, outperforming 10 percent rise in the benchmark Nifty 50 index. Earlier, De Nora India had hit its 52-week high of Rs 2,334 apiece on July 18, 2023.

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