Shares of this jewellery manufacturing company clocked 5 percent upper circuit after MOU in the Vibrant Gujarat 2024 Summit with a proposed investment of Rs.102 crores. The shares have delivered more than 90 percent return to its shareholders in one year.
With a market capitalisation of Rs. 81.1 crores, the shares of Dev Labtech Venture started Monday’s trading session on a higher note at Rs. 99.72 compared to its previous close of Rs. 94.98. Within a few minutes of the opening bell, the shares clocked 5 percent upper circuit at Rs. 99.72 apiece.
Such bullish movement in the share price was observed after the company in an exchange filing announced that they had signed an MOU at the Vibrant Gujarat 2024 Summit for the purpose of growth and expansion in the existing line of business of lab-grown diamond manufacturing, natural diamonds, gems and jewellery Sector with a proposed investment of Rs. 102 crores and employment of 500 people. Furthermore, the location of the project is proposed at Surat, Gujarat and will be commenced in the year 2026.
Coming onto the company’s financial statements, the revenue increased marginally by 1.5 percent from Rs. 20.68 crores in the June quarter to Rs. 20.92 crores during the September quarter. In addition, the net profits magnified by 191 percent from Rs. 45 lakhs to Rs. 1.31 crores during the same timeframe.
Looking at the important ratios, the return on equity (RoE) declined from 28.15 percent during FY 21-22 to 9.75 percent in FY 22-23. In addition, the return on capital employed (RoCE) decreased from 22.52 percent to 13.02 percent. On a contrasting note, Debt to equity ratio decreased from 0.6 times in FY 21-22 to 0.06 times in FY 22-23, which means the company has not relied much on debt to fuel its operations.
According to the latest shareholding pattern, Promoters have a 68.01 percent stake in the company and the remaining 31.99 percent is with the Public or Retail investors.
Headquartered in Bhavnagar, Dev Labtech Ventures Limited was incorporated in 1993. The company is in the business of manufacturing, marketing and sourcing diamonds Natural and Lab-grown having wide applications in Jewellery.
Written By Vaibhav Patil
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