Galaxy Surfactants shares hit 52-week high

Shares of Galaxy Surfactants surged over 8% on September 16, hitting a 52-week high of ₹3,325 on the National Stock Exchange (NSE). The rally was driven by high trading volumes, with a total of 1 lakh shares exchanged on the BSE and NSE combined, significantly higher than the monthly average of 27,000 shares.

Positive quarterly performance drives investor confidence

Galaxy Surfactants' strong stock performance follows the company's positive financial results for the quarter ending June 2024. The speciality chemicals giant reported a net profit of ₹79.7 crore, reflecting a 6% year-on-year (YoY) increase. Additionally, its earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at ₹129.5 crore, growing by 3% YoY while maintaining stable margins of 13.2%.

Revenue for the quarter also grew by 3% YoY to ₹979.5 crore, signalling steady progress despite ongoing challenges in the global supply chain. These strong results have bolstered investor confidence, contributing to the surge in the company’s stock price.

Managing director highlights improving demand

K. Natarajan, Managing Director of Galaxy Surfactants, noted visible signs of improving demand for their premium speciality products. This development is expected to further enhance the company’s profitability in the coming quarters. Specialty chemical manufacturers like Galaxy Surfactants have been affected by weak demand and inventory destocking during FY24. Still, there are encouraging signs of recovery across geographies.

Despite logistical disruptions affecting the supply of raw materials and dispatching finished goods, Galaxy Surfactants remains optimistic. The company expects volume growth to remain within its projected range of 6-8%, supported by a gradual improvement in global demand.

Stock performance outshines Nifty

As of 12:47 p.m. on September 16, Galaxy Surfactants shares were trading at ₹3,300 on the NSE, marking an 8% gain. The stock has rallied 19% so far in 2024, outperforming the Nifty’s return of 14%. Over the past 12 months, Galaxy Surfactants has climbed 23%, compared to the Nifty’s 28% rise.

This impressive performance has attracted attention from investors seeking to buy shares online, as Galaxy Surfactants continues to show resilience and growth in a challenging market. For those looking to buy shares online, the company’s strong fundamentals and improving market conditions present an attractive opportunity.

Final takeaways

The significant rise in Galaxy Surfactants' share price highlights the growing demand for speciality chemicals and the company’s ability to navigate global challenges. Given its strong financials and positive outlook, investors considering options to buy shares online may find Galaxy Surfactants an appealing addition to their portfolio.