Shares of Ambar Protein Industries continued to rise north, with a 5% cap of Rs 730 on the BSE on Friday. The stocks traded at record highs and froze at highs for the 58th straight day.

Shares of the edible oil company have surged nearly 1,500% in the past three months from the Rs 45 level on June 23, 2022. In contrast, the S&P BSE Sensex rose 12% over the same period.

Ambar Protein Industries was established on December 31, 1992, to produce edible/non-edible oil cakes and “D” oil cakes. Currently, the company is mainly engaged in refining and trading cottonseed oil while acquiring and packaging refined cottonseed oil, refined sunflower oil, refined corn oil and soybean oil for resale.

Currently, Ambar Proteins is traded under the “XT” group. XT only includes all stocks listed on the BSE and settled by trading pair. These companies have low-to-medium market capitalisations, low contributions to overall deal value, and require relatively high attention.

Ambar Protein has a low equity base with 5.75 million shares outstanding as of June 30, 2022. According to the shareholding data, the promoter holds 74.97% of the shares, and the remaining 25.03% of the shares are held by individual shareholders (24.42%) and others (0.61%).

In the fiscal year 2021-22 (FY22), Ambar Protein refined 21,239.96 tonnes of cottonseed oil at its refinery (previous year: 27,457.91 tonnes). The company also sourced and packaged 2,134.92 tonnes of refined peanut oil, sunflower oil, corn oil, mustard oil, and soybean oil for resale.

Looking ahead, Ambar Protein said in its FY22 annual report that the long-term outlook for edible oil demand in India favours population growth, with expectations of increased per capita consumption, which in turn will be driven by changing lifestyles, urbanisation and growing middle-class proportion of the population increase and the level of wealth rise steadily.

“The near-term outlook for edible oil companies is expected to remain stable due to stable domestic edible oil demand and improved operating margins due to increased refining operations,” it added.

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In addition, Ambar Proteins said cotton acreage is expected to be very high next season as cotton prices are tightly regulated and better than the government’s minimum support price. “In addition to this, all millet and pepper growers will only grow cotton, as they have suffered significant losses from the sudden drop in prices of all commodities during the harvest season,” the company said.