Small-cap stock below ₹10: Penny stock jumps over 10% after Q3 results 2025 | Stock Market News
Small-cap stock below ₹10: Shares of smallcap stock Davangere Sugar Company surged over 10 percent on Monday, January 20 after the company posted string results for the quarter-ended December 2024 (Q3FY25).
As per the company’s exchange filing, financial results for the quarter ended 31 December 2024 showed notable growth compared to the preceding quarter ended 30 September 2024.
The company’s net profit rose over 20 percent to ₹6.76 crore in the quarter under review versus ₹5.61 in the year-ago period. Sequentially, the profit jumped a massive 428 percent from ₹1.28 crore in the September quarter (Q2FY25).
Total income declined on a YoY basis to ₹73.58 crore in Q3FY25 from ₹78.83 crore in the year-ago period, however, on a QoQ basis, it climbed significantly, 85 percent from ₹39.77 crore. EBITDA for the third quarter stood at ₹18.2 crore for the third quarter, a 14% percent increase YoY.
Total expenses also increased to ₹66.12 crore, up from ₹37.98 crore in the September quarter, largely due to higher material costs and other expenses.
Meanwhile for the nine months ending December (9MFY25), the company’s profit came in at ₹9.85 crore, down from ₹14.45 crore in the same period last year. Revenue also declined to ₹157.52 crore in the period under review from ₹222.9 crore in 9MFY24.
Stock Price Trend
The penny stock rose as much as 10.4 percent to its day’s high of ₹6.46. It is still 43 percent away from 52-week high of ₹11.35, hit in February 2024. Meanwhile, it has climbed 29 percent from its 52-week low of ₹5, recorded last week on January 13, 2025.
Other Developments
In September 2024, the Davangere Sugar Company announced plans for a rights issue of shares, approved by its board, to raise ₹400 crores. The proceeds are earmarked for enhancing ethanol production capacity and related infrastructure.
As part of its commitment to ensuring a stable raw material supply and community welfare, the company has undertaken the planting of over 15,000 acres of sugarcane, providing subsidies for plantations and additional financial aid to farmers.
Davangere Sugar Company operates a new plant that includes a sugar factory with a capacity of 6,000 TCD, an ethanol distillery producing 65 KLPD, and a co-generation power plant with a capacity of 24.45 MW. The company also has five sugar storage units, each with a capacity of 60,000 tonnes, ensuring efficient storage and distribution.
