The share price of a small-cap company rose by 5.7% to its intraday high of ₹ 262 per share from its previous close of ₹ 247.7 on Tuesday after the company received an order worth ₹150 Crores.
According to the exchange filing, Sarda Energy and Minerals Ltd received an order from Gensol Engineering Limited to install the solar power plant of 50 MW DC in Chhattisgarh to meet the captive requirements of the Company’s production and mining facilities.
Looking at the company’s financials, their net revenue increased by 3.5% year over year, from ₹ 967 crore in Q2FY23 to ₹ 1,001 crore in Q2FY24. Their revenue fell by 4.8% sequentially from ₹1,052 crore in Q1FY24 to the current levels.
Furthermore, the company’s net profit decreased by 19.8% year on year, from ₹186 crores in Q2FY23 to ₹149 crores in Q2FY24. Their quarterly profit decreased by 13% from ₹172 crore in Q1FY24 to current levels.
The company has a low price-to-earnings ratio of 15 compared to its peers, also it has a low debt-to-equity ratio of 0.41, a return on equity ratio of 18.7%, a return on capital employed of 19.3%, and a net profit margin of 14.3%.
In the past six months, the company’s share price has increased by 57%, and in the past year, it has increased by 131%. For instance, if an investor invested ₹1 Lakh a year ago the current value would be ₹2.31 Lakhs.
Sarda Energy and Minerals Limited has a market capitalization of Rs 8,800 crores. The promoter owns 72.64% of the company, 24.58% of the general public, 2.69% of foreign institutional investors, and 0.09% of domestic institutional investors.
Sarda Energy and Minerals Limited (SEML), the flagship business of the Sarda Group, was founded in 1973 and specializes in the production of power, ferroalloys, and steel.
Written by Sriram KV
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