Stock of this edible oil company has zoomed nearly 1,500% in three months

Shares of Ambar Protein Industries continued at their northward journey as they were locked in the 5-per cent upper circuit band at Rs 730 on the BSE on Friday. The shares traded at their all time level and have frozen at the upper circuit for 58th straight consecutive day.

In the past three months, the stock of the edible oil company has zoomed nearly 1,500 per cent from a level of Rs 45, which it had hit on June 23, 2022. In comparison, the S&P BSE Sensex has rallied 12 per cent during the same period.

Ambar Protein Industries was incorporated on December 31, 1992 with the objective of manufacturing edible/ non- edible oils oil cakes and ‘D’ Oil Cake. Presently the company has dealing in segment of refining cotton seed oil and trading, and also purchased & packed Refined Cottonseed Groundnut Oil Refined Sunflower Refined Maize Oil and Soybean Oil for resale.

Currently, Ambar Proteins is traded under ‘XT’ group. XT comprises of all stocks listed only on the BSE and settled on a trade-to-trade basis. These companies have low-to-moderate market capitalization, lower contribution to overall trading turnover and requires relatively higher attention.

Ambar Protein has a low equity base with 5.75 million total outstanding shares as on June 30, 2022. The promoters held 74.97 per cent stake, while the remaining 25.03 per cent holdings are with individual shareholders (24.42 per cent), and others (0.61 per cent), shareholding pattern data shows.

During the financial year 2021-22 (FY22), Ambar Protein had refined 21,239.96 MT of cotton seed oil in its refinery (Previous Year: 27,457.91 MT). The company had also purchased & packed 2,134.92 MT refined groundnut oil, refined sunflower, refined maize oil, mustard oil and soybean oil for resale.

Looking ahead, Ambar Protein said in its FY22 Annual Report that the long-term outlook of edible oil demand in India is favourable on expectation of increasing population, increase in per capita consumption which in turn would be driven by changing lifestyles, growing urbanization, increasing proportion of middle-class population and steadily rising affluence levels.

“The near-term outlook for the edible oil companies is expected to be stable on steady edible oil domestic demand and improvement in operating margin due to increasing refining operation,” it added.

Moreover, Ambar Proteins said that in the coming season cotton growing is expected to be very higher because of the prices for cotton are ruled very higher and better than the Government Minimum Support Price. “In addition to this, all the farmers of millets and chillies are going to sow only cotton because they incurred heavy losses due to sudden fall of all commodity prices at the time of harvesting season,” the company said.