On Friday’s session, Microcap stock rose 5 percent and hit its upper price band of Rs 30.58 from the previous close of Rs 29.13 after the company received four orders from the Government of West Bengal.
According to Mehai Technology filling, the company has recently received four prestigious orders from the Public Health Engineering Directorate, Government of West Bengal, Alipore Division.
The orders are for deep replacement tubewells with a diameter of 250mm x 150mm and a depth of 360 meters in various locations in the state. The total contract value for orders is approximately Rs 78.7 Lakhs, and the date of commencement for three orders is 28.11.2023 and 29.11.2023 for one order. The period of completion is 30 days.
Looking at Mehai Technology’s financials, the net revenue increased by 524 percent year over year, from Rs 0.6 crore in Q2FY23 to Rs 3.8 crore in Q2FY24. Their revenue increased from Rs 1.8 crore in Q1FY24 to the current levels by a sequential 111 percent increase.
In addition, the company’s net profit rose by 666 percent year over year, from Rs 0.03 crores in Q2FY23 to Rs 0.23 crores in Q2FY24. Their profit decreased by 64 percent on a sequential basis from Rs 0.14 crore in Q1FY24 to the current levels.
The promoters of the company own 52 percent of the company, while the public owns the remaining 47 percent.
Mehai Technology is a microcap company with a market capitalization of Rs 42.02 crores. Mehai Technology’s share price has risen by 44 percent year to date and 62 percent during the last months.
Compared to its peers, the company has a low price-to-earnings ratio of 28 and a low debt-to-equity ratio of 0.11. Their return on equity, return on capital employed, and net profit margin are all higher than in the previous three years.
Mehai Technology Ltd. was established in 2013 and is focused on trading and electronic products. In Eastern India, the company operates an electronics retail chain; its products include refrigerators, air conditioners, coolers, televisions, washing machines, and mobile phones.
Written by Sriram KV
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