Shares of this GI Pipes manufacturing company jumped around 4 percent in Thursday’s trading session after securing worth Rs. 60.1 crores. The shares have delivered a multibagger return of 158 percent to its investors in one year.
With a market capitalisation of Rs. 8,646 crores, the shares of Surya Roshni started Thursday’s trading session positively at Rs. 778 compared to its previous close of Rs. 772.20. The shares hit a high of Rs. 815, gaining around 4 percent and closed the day at Rs. 791 apiece.
Such a positive movement in the share price was observed after the company, in an exchange filing announced that they had received an order amounting to Rs. 60.51 crores under the Multi-Village Drinking Water Supply Scheme for the supply of MS-Pipe (Coated). The orders are to be executed within 12 to 16 weeks.
Coming onto the company’s financial statement, the revenue increased marginally by 3 percent from Rs. 1,875 crores in the June quarter to Rs. 1,916 crores during the September quarter. In addition, the net profits zoomed by 29 percent from Rs. 59 crores to Rs. 76 crores during the same period.
Furthermore, the company has an order book of around Rs. 850 crores in hand for API, Exports and Actual Users, which provides good revenue visibility over the short to medium term. Moreover, they aim to achieve a 50 percent contribution from value-added products and expect improved margins in the lighting division and plan to invest Rs. 200 crores in CAPEX for FY24 and Rs. 100 crores for FY25.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 14.06 percent during FY 21-22 to 19.67 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 15.51 percent to 22.26 percent during the same timeframe. Furthermore, the net profit margin increased from 2.65 percent during FY21-22 to 4.20 percent during FY22-23.
According to the BSE data, Ace Investor Mr Mukul Agrwal, entering the stock in September 2022, currently holds 15 lakh equity shares equivalent to a 1.38 percent stake in this company. The current holding value of his investment amounts to Rs. 119.9 crores.
Headquartered in Delhi, Surya Roshni Limited incorporated in 1973 has emerged as India’s largest ERW Pipes exporter, largest GI Pipes producer, and the second largest in the lighting segment. Its focus is on developing the value-added product mix (3LPE Coated pipes, Alkyd pipes, etc.
Written By Vaibhav Patil
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