Smallcap stock in the lighting industry is in focus after its subsidiary was selected for the government PLI (Product-Linked Incentive) scheme. This development can increase revenue and strengthen its manufacturing.
Share Price Movement
With a market capitalization of ₹1,790 Cr, the stock of IKIO Lighting opened at ₹230 up 1% from yesterday’s close, and after opening, it made an intraday high of ₹235 up 3%.
The stock has seen a continuous decline since its listing in June 2023; the stock has fallen over 51% from its all-time high of ₹475.
PLI Scheme
IKIO Solutions Private Limited (ISPL), a wholly owned subsidiary of IKIO Lighting Limited, has received approval under the product-linked incentive scheme for white goods (LEDs).
The government approved a PLI scheme for white goods manufacturers (A/C & LED lights) in 2021, and it will last until 2029. The objective of the scheme is to strengthen domestic manufacturing, get investment, create more jobs, and increase exports.
To be eligible for PLI, companies have to adhere to several rules, like the company should be incorporated in India and meet several financial conditions like minimum revenue requirement.
Q2FY25
The company reported a marginal decrease of 1.6% in QoQ revenue from ₹125 Cr in Q2FY25 to ₹127 Cr in Q1FY25, and the net profit saw an increase of 4.28% from ₹12.37 Cr to ₹12.9 Cr for the same period.
About the Company
IKIO Lighting is an Indian manufacturer of LED lighting solutions. They are focused on sustainability and providing low-energy LED products to help India meet its sustainability goals. Are primarily an original design manufacturer and design, develop, manufacture, and supply products to customers, who then further distribute these products under their own brands. They are building an international customer base, primarily in the United States. By utilizing their four manufacturing facilities, and serve the varying needs of customers, including residential, industrial, and commercial lighting.
Written By Abhishek Das
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