In a striking display of earnings-led momentum, shares of Transpek Industry, a specialty chemical manufacturer, surged by 20%, hitting the upper circuit on 8 May 2025. The rally was driven by the company’s stellar Q4FY25 performance, where net profit surged 241% year-on-year, igniting investor optimism and drawing widespread market attention.
Notably, ace investor Mukul Agrawal, known for his discerning picks in the small and mid-cap space, holds 1,18,578 shares (2.1% stake) in the company, valued at nearly INR 17.8 crore post-surge. His early bet on the company adds to his growing list of prescient investments that have yielded significant returns.
🚀 The Numbers Behind the Surge
Transpek Industry reported net profit of INR 19.25 crore in Q4FY25, a dramatic increase from INR 5.64 crore in the same quarter last year. Sequentially, the profit rose 81% from INR 10.6 crore in Q3FY25. Revenue for the March quarter stood at INR 165.26 crore, reflecting a 12% YoY from Q4FY24’s INR 148.21 crore and ~3% QoQ growth.
- EBIDTA rose to INR 32.2 crore from INR 18.8 crore YoY — a 72% growth.
- EBIDTA Margin improved from 12.66% to 19.5%.
- EPS skyrocketed from INR 10.10 in Q4FY24 to INR 34.46 in Q4FY25.
For the full year ended March 2025, net profit climbed 26.4% to INR 48.74 crore, and revenue rose 12.1% to INR 649.85 crore.
💹 Market Reacts: Stock Hits Upper Circuit
Following the earnings announcement, Transpek’s stock price leapt from INR 1,251.15 to 1,558 in 2 days, Transpek shares locked in 20% upper circuit on 8 May 2025 trading session. The market capitalization stood at approximately INR 698.84 crore.
🏭 Business Overview
Transpek Industry is a Vadodara-based chemical company. The company is a leading exporter of chlorinated and specialty chemicals, which serves a wide array of industries such as: pharmaceuticals, agrochemicals, dyes, pigments, textiles, and advanced polymers.
The company operates through its standalone entity and its wholly owned subsidiary Transpek Creative Chemistry. The consolidated results mirror the standalone strength, with both reporting nearly identical top and bottom-line growth.
📈 Financial Fortitude & Governance
Some of the key highlights from the company’s filings and audit reports:
- The Board has declared a dividend of INR 20/share (200%), subject to shareholder approval.
- Operating cash flow stood robust at INR 135 crore for the year, with prudent investments and controlled finance costs.
On the balance sheet front:
- Total assets rose to INR 1,000 crore.
- The company remains largely debt-light, with manageable borrowings and a strong equity base of over INR 745 crore.
🧾 Valuation & Outlook
At the current price, Transpek is trading at a trailing P/E of ~15.3x, based on FY25 EPS (~INR 87.25), which appears modest given the sector’s average and the company’s growth trajectory. With rising global demand for specialty chemicals and Transpek’s niche expertise in chlorinated chemistry, analysts see further upside, especially if the margin improvement sustains.
Moreover, Mukul Agrawal’s holding acts as a sentiment booster. His involvement often signals fundamental strength and long-term potential.
📌 Bottom Line
Transpek Industry’s breakout quarter has reaffirms its position among the fastest-growing small-cap chemical companies. With consistent revenue growth, sharp profit expansion, and strategic investor interest, it is fast transforming from an under-the-radar chemical exporter into a market darling.
For investors eyeing fundamentally strong picks in the specialty chemical sector, Transpek Industry has certainly earned a spot on the watchlist. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.