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Tirupati Graphite (TGR) Share Price Fell Despite Surging Revenues. Should You Buy It?

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Updated: 2 Dec 2021

Tirupati Graphite PLC (LON: TGR) share price fell 2.21% after releasing its earnings results for the six months ended 30 September 2021 despite its revenues surging 33% to £560,100 compared to the £419,402 registered in a similar period last year.

Investors ignored the positive report despite the graphite company reporting that flake graphite production had risen to 1,060 metric tonnes from last year’s 716 metric tonnes.

Tirupati expects production to exceed 4,000 tonnes in the six months to March 2022 as it starts production activities at its Vatomina mine, which was another crucial highlight of the report.

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The company revealed that it had started constructing another plant in Sahamamy Madagascar with the capacity to produce 18,000 tonnes of graphite annually.

Tirupati reminded investors that it had raised £10 million via an oversubscribed share offering and had £6.41 million in cash at the end of the six months.

Despite its gross profits rising to £305K, it reported a pretax loss of £1.09 million compared to last year’s £0.49 million loss. This was despite the company’s revenues surging higher.

Shishir Poddar, Tirupati Graphite’s Executive Chairman, said: “We have continued the strong progress made since our IPO in December last year investing in and establishing new capacities for increased production from our low cost, high margin flake graphite operations in Madagascar, furthering the proof of concept established with the 3,000 tpa upstream operations and 1,200 tpa expandable graphite operations established prior to IPO.”

Adding:

“We have also continued to develop our sustainable new age materials making a mark in the world of advanced materials. With two projects having been commissioned in the period under review and a further three under investment and development, we will be adding significant production capacities across our upstream and downstream businesses from the next financial year onwards.”

Investors appeared more focused on the company’s rising losses compared to its positive prospects. Nevertheless, long term investors may find Tirupati’s current prices quite attractive since the company’s shares falling  24.2% in the past six months.

*This is not investment advice. Always do your due diligence before making investment decisions.

Tirupati Graphite share price.

IG chart of Tirupati Graphite share price 02-12-2021
Source: IG

Tirupati Graphite share price fell 2.21% to trade at 68p, falling from Wednesday’s closing price of 69.50p.

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