Excel Industries surges on promoter’s buyback plan

Excel Industries’ (EIL) board member approved buyback of equity shares. On March 28, the company’s board of directors held a meeting. The company will buy back fully paid up equity shares of face value of Rs 5 with share price limit of Rs 275 per equity share.

EIL decided to buy back shares for a maximum amount of Rs 18 crore. The company will buy around 11.5 lakh equity shares from existing equity shareholders or beneficial owners, other than the promoters/ persons who are in control of the company. It will also buy back shares from the open market purchases through BSE and NSE using their nationwide electronic trading terminals.

On financial front, EIL’s revenue declined by 12.22 per cent to Rs 100 crore in Q3FY16 as compared to same period in previous fiscal year. The company’s EBITDA too decreased by 75 per cent to Rs 10.58 crore in Q3FY16 on a yearly basis. Its bottom line reduced almost four times to 2.11 crore in Q3FY16 as compared to same period in previous financial year.

EIL’s share price increased by 15.81 per cent on bourses in early trades; and is trading at Rs 233 on an intraday basis.

EIL operates through four divisions that include Chemicals, Veterinary, Environ-Biotech, and Pharma. The company’s chemical division offers flame retardants, light stabilisers, clarifiers for polypropylene, specialty monomers and trifunctional (B3) monomers. Its veterinary products include butaphosphan, clorsulon, homidium bromide, homidium chloride, isometamidium chloride, hydrochloride, nitroxynil, toldimphos sodium and triclabendazole among others. EIL’s Environ-Biotech division offers Organic Waste Convertor (OWC), in-vessel composter and sanitising products.