Synopsis:
Investment and Precision Castings secured a key defence contract from PLR Systems, a joint venture of Adani Group and Israel Weapon Industries, enhancing its sector presence.

This micro-cap stock, engaged in the production of investment castings, supplying precision components to automotive, valve, and various engineering industries, hit a 5 percent upper circuit after receiving a strategic contract from Adanin Group and the Israel Defence joint venture.

With a market capitalization of Rs. 521.65 crores, the shares of Investment and Precision Castings Limited hit a 5 percent upper circuit of Rs. 521.65 per share on Tuesday, up from its previous closing price of Rs. 496.85 per share.

Investment and Precision Castings Limited (I&PCL) has received a strategic contract from PLR Systems Private Limited to supply precision investment casting components for the defence sector. PLR Systems, a joint venture between Adani Group and Israel Weapon Industries, manufactures well-known firearms such as the TAVOR, X95, and UZI used by Indian defence forces. 

This order marks a significant step for Investment and Precision Castings Limited in strengthening its presence in the defence manufacturing sector. The company sees this as a major milestone that showcases its technical capability and manufacturing quality. 

Investment and Precision Castings Limited (IPCL) was established in 1975 and is based in Bhavnagar, Gujarat, India. The company is an Indian company that specializes in the production of investment castings.

The company is a leading and early player in the Indian investment casting industry. The company makes complex castings using many types of materials, such as iron-based, non-iron, nickel, and cobalt alloys. They can produce parts weighing up to 300 kilograms.

Investment and Precision Castings Limited specializes in manufacturing ready-to-assemble metal components through investment casting, CNC machining, and vacuum casting. The company supplies to diverse sectors, including automotive, aerospace, defence, and industrial machinery.

Coming into financial highlights, Investment and Precision Castings Limited’s revenue has increased from Rs. 39.76 crore in Q4 FY24 to Rs. 42.51 crore in Q4 FY25, which has grown by 6.92 percent. The net profit has also grown by 171.43 percent from Rs. 0.70 crore in Q4 FY24 to Rs. 1.90 crore in Q4 FY25.

Investment and Precision Castings Limited’s revenue has grown at a CAGR of 11.67 percent over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 9.56 percent and 6.85 percent, respectively. Investment and Precision Castings Limited has an earnings per share (EPS) of Rs. 6.06, and its debt-to-equity ratio is 0.71x.

Written By – Nikhil Naik

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