Shares of S H Kelar and Company (SHK) surged 13 per cent to Rs 170 on the BSE in the intra-day trade on Friday after the company announced it has won an order in the home care segment from a large global multinational company (MNC) player in the domestic fast moving consumer goods (FMCG) market. The company did not disclose the size of the order.
SHK is the only Company of Indian origin to file patents in the field of Fragrance and Novel Aroma Molecules. These patented molecules along with SHK’s strong & well-known expertise in the Indian fragrance industry paved the way for this order win, the company said in a business update.
The company further said this strategic association will enhance its competitive advantage in the domestic markets and will enable SHK to build its presence in the high-potential global MNC space in the longer term.
Separately, the company said financial impact due to temporarily suspended operations at its unit in Mahad on account of unprecedented rains was nominal. “The Company had undertaken all necessary steps to resume operations at the earliest. Accordingly, the operations and production activities at the Mahad unit have restarted in a calibrated manner from September 1, 2021 onwards,” the company said.
SHK offers products under SHK, Cobra and Keva brands. The Company has a diverse and large client base including leading national and multinational FMCG companies, blenders of fragrances & flavours and fragrance & flavour producers.
The Company’s client engagements, especially the domestic FMCG players, continue to remain strong with steady wins across categories helping the Company to sustain growth momentum. The Company is confident of robust growth potential and opportunities across the domestic FMCG space as well as in the international markets over the medium to longer term. Once the macro situation normalises, growth is bound to accelerate, SHK said in the financial year 2020-21 annual report.
At 10:10 am, the stock was trading 11 per cent higher at Rs 167.85 on the BSE, as compared to a 0.41 per cent rise in the S&P BSE Sensex. Trading volumes on the counter jumped over six-fold with a combined 1.64 million equity shares having changed hands on the NSE and BSE.