Synopsis:
Allen Reinforced Plastics Limited, a step-down subsidiary of Jaykay Enterprises Ltd, has received a ₹94.45 crore LoI from BrahMos Aerospace and a ₹15.90 crore communication from Bharat Dynamics Ltd.
The shares of the Small-Cap company, specializing in high-precision manufacturing for the defense and aerospace sectors, jumped by up to 16 percent upon receiving a Letter of Intent (LoI) from BrahMos Aerospace & Bharat Dynamics Ltd, totalling Rs. 110.35 crores
With a market capitalization of Rs. 1,897.33 Crores on Monday, the shares of Jaykay Enterprises Ltd rose by 16.1 percent after making a high of Rs. 163.00 compared to its previous closing price of Rs. 140.30.
Allen Reinforced Plastics Limited, a step-down subsidiary of Jaykay Enterprises Limited, engaged in the manufacturing of composite and allied structural applications, has received a Letter of Intent from multiple companies.
The first is from BrahMos Aerospace, valued at approximately Rs. 94.45 crore (including GST), and the second is a communication from Bharat Dynamics Limited, worth about Rs. 15.90 crore (including GST). Once these are converted into confirmed orders, they are expected to significantly enhance the company’s project pipeline and support future revenue growth.
Financials & Others
The company’s revenue rose by 228 percent from Rs. 23.56 crore to Rs. 77.42 crore in Q1FY25-26. Meanwhile, the Net profit rose from Rs. 4.56 crore to Rs. 20.22 crore during the same period.
The company has a strong financial position with a low debt-to-equity ratio of 0.08 and current assets exceeding current liabilities. It has also demonstrated robust performance, achieving an average 3-year revenue growth of 70.09%.
Jaykay Enterprises Ltd is an India-based company, part of the JK Group, established in 1918, that specializes in advanced defense technology and engineering solutions. The company focuses on high-precision manufacturing in sectors such as Defense, Aerospace, SpaceTech, and MedTech, with expertise in additive manufacturing, prototyping, CNC machining, and composite engineering.
It operates mainly in two segments: Defense and Aerospace, and Digital & Advanced Systems. With manufacturing facilities in Bangalore and Hyderabad, equipped with state-of-the-art infrastructure to handle large and complex projects. The company’s mission is to deliver high-precision manufacturing at scale to contribute to India’s self-reliance.
The company has a set of marquee clients, which include key players in the defence and aerospace sectors, such as the Indian Army, Navy, Air Force, ISRO, BrahMos Aerospace, and major Defence PSUs like DRDO, BEL, BHEL, and HAL. They also serve leading private organisations, including Tata Advanced Systems, Mahindra Defence Systems, Adani Defence & Aerospace, and Agnikul Cosmos.
Written by Sridhar J
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