This cathode and anode manufacturing stock surged 13 per cent today - Dalal Street Investment Journal

On January 9, De Nora India Ltd was among the Top Gainers in BSE group ‘B’. The shares of De Nora India Ltd surged 13 per cent and closed trading at Rs 859.8. The stock opened at Rs 774.3 and made an intraday high and low of Rs 883.05 and Rs 774.3, respectively.

De Nora India Ltd is a subsidiary of the multinational company De Nora Group, Italy. The company operates in the Chloro-alkali industry for manufacturing and coating of anode and cathode used in the electrolytic process by various customers to produce caustic soda and chlorine. The company’s product portfolio includes anode for cathodic protection, platinized titanium anodes and Greenchrome anodes for surface finishing applications, and Electrochlorination systems for water disinfection.

Around 93 per cent of the revenue comes from electrodes, while the rest 7 per cent comes from the water treatment segment. The company is involved in cyclic business as majority of the company’s income comes from recoating business, wherein the life of coating lasts for 6-8 years.

In FY22, the company recorded the highest-ever sales and net profit numbers. FY22 revenue stood at Rs 74 crore, whereas Rs 16 crore of net profit was generated by the company. As per FY22, the company has ROE and ROCE of 20.7 per cent and 28.4 per cent, respectively.

About the shareholding pattern, about 53.68 per cent of the company’s stake is owned by the promoters and the rest 46.32 per cent by non-institutional investors.

The company has a market capitalisation of Rs 458 crore. The stock has a 52-week high and low at Rs 988 and Rs 356, respectively. The scrip is trading at a PE multiple of 29.2x.