Synopsis:
Sunita Tools Limited will host a Thai Ministry of Defence delegation in Mumbai to discuss potential artillery shell collaborations, reflecting growing defence ties and showcasing the company’s expertise and global manufacturing capabilities.
During Tuesday’s trading session, shares of a leader in the mould base industry and a major defence product manufacturer are in focus on the stock exchanges, following the announcement that delegates from the Ministry of Defence (MOD) of Thailand will be visiting the Mumbai Office this week.
With a market cap of Rs. 533.3 crores, shares of Sunita Tools Limited closed in the red at Rs. 872.9 on BSE, down by around 4 percent, as against its previous closing price of Rs. 907.2. The stock has delivered positive returns of nearly 52 percent in the last one year, and has gained by about 30 percent in the last one month.
What’s the News
According to the latest regulatory filings with the BSE, Sunita Tools Limited announced that delegates from the Ministry of Defence (MoD) of Thailand will visit its Mumbai Office this week. The visit is intended to discuss potential collaborations and supply agreements for artillery shells.
This engagement highlights the strengthening relationship between Sunita Tools Limited and the Thai MOD, underscoring the company’s expertise in manufacturing high-quality defence equipment. Discussions are expected to focus on exploring opportunities for cooperation, particularly in the supply of artillery shells and other defence-related products during the visit.
Management Guidance
The management has provided detailed guidance for FY26, FY27, and FY28, outlining expectations for the number of empty artillery shells, average price per piece (USD), EBITDA margin, PAT margin, and Debt-to-Equity (D/E) ratio under both worst-case and best-case scenarios.
For FY26, the worst-case scenario anticipates producing 22,500 pieces, while the best-case scenario expects 30,000 pieces. The average price per piece is $250 per piece. EBITDA margins are projected between 28-30 percent in the worst case, and between 30-34 percent in the best case. PAT margin ranges from 16-17 percent for the worst case, and 17-18 percent for the best case. The Debt-to-Equity ratio is 0.2 in both cases.
For FY27, the number of pieces is expected to be 1,30,000, with an average price per piece of $275. EBITDA margin is forecasted at 30-34 percent, while PAT margin of 18-20 percent, and the Debt-to-Equity ratio of 0.5.
For FY28, projections include 2,10,000 pieces at an average price per piece of $300 each, maintaining an EBITDA margin of 30-34 percent, PAT margin at 18-20 percent, and the Debt-to-Equity ratio at 0.2.
Financials & More
In H2 FY25, Sunita Tools reported a consolidated revenue from operations of Rs. 14.3 crores, a marginal decline of around 6 percent HoH and 18 percent YoY. Similarly, the company’s net profit for the quarter stood at Rs. 2 crores, representing a decrease of nearly 50 percent HoH and 47 percent YoY.
Sunita Tools Limited, a leader in the engineering and mould base industry, specialises in manufacturing ground plates, mould bases, and precision CNC-machined components. Its products serve as critical components across diverse sectors, including automotive, pharmaceuticals, electronics, consumer goods, aerospace, and defence, with rigorous quality testing ensuring compliance with industry standards.
The company currently operates from its established facilities in Ahmedabad and Palghar for engineering and tooling, with its upcoming defence manufacturing unit in Faridabad.
Written by Shivani Singh
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