BofA Buys Stake in Oriental Carbon, Stock Surges 20%
Bank of America (BofA) made a significant move in the stock of Oriental Carbon & Chemicals by acquiring 53,428 shares in the microcap company via a block deal on Monday. The shares were purchased at Rs 289.53 per share, with the total deal amounting to Rs 1.5 crore. This acquisition triggered a sharp 20% increase in Oriental Carbon's stock price, which soared by Rs 50.35, reaching a day's high of Rs 302.14 on the National Stock Exchange (NSE).
Oriental Carbon Shows Strong Year-to-Date Performance Despite Long-Term Decline
Oriental Carbon & Chemicals, which specializes in the production of insoluble sulphur, has experienced a solid 31% gain on a year-to-date basis, far outpacing the Nifty’s 6% return. However, the stock remains down 55% over the past year, and its market capitalization stands at Rs 302 crore. The stock has dropped significantly from its 52-week high of Rs 824.
Despite the long-term decline, the company’s shares are trading above their 50-day and 200-day simple moving averages (SMA), at Rs 188 and Rs 221, respectively, indicating some stability in the stock’s performance. The stock is also noted for being low on volatility, with a 1-year beta of 0.9, according to Trendlyne.
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Company Faces Challenges in Financial Performance
The company's recent financial results highlight the challenges Oriental Carbon faces. In the quarter ending March 31, 2025, Oriental Carbon reported a consolidated net profit of Rs 90 lakh, a sharp decline from Rs 14 crore in the same period last year. Additionally, the company’s revenue fell significantly to Rs 29 crore, down from Rs 127 crore in the previous year, signaling the need for strategic adjustments moving forward.
