Shares of this logistic company jumped 4 percent in Wednesday’s trading session after receiving an order worth Rs 6.84 crores from Adani Group. The shares have delivered a multibagger return of 136 percent in one year to its shareholders.
With a market capitalisation of Rs. 275, the shares of Tara Chand Infralogistic Solutions Ltd started Wednesday’s trading session on a flatter note at Rs. 189. During the trading session, the shares hit a high of Rs. 196.80, gaining around 4 percent and closed the day at Rs. 195 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had been awarded a new contract for the deployment of various lifting capacity cranes at the Ambuja Cement Plant (Adani Group) in Chattisgarh.
Under this new contract, the company shall provide cranes from 75Mt to 800MT lifting capacity for periods of six to twelve months, which are further extendable as per site requirements. The total contract value for this order to be executed within FY2024-25 is Rs. 6.84 crores.
Coming onto the company’s financial statements, the revenue increased by 5 percent from Rs. 42.21 crores during the September quarter to Rs. 44.36 crores in the December quarter. In addition, the net profits zoomed by 25 percent from Rs. 2.69 crores to Rs. 3.35 crores during the same period.
As of February 2024, the logistics company had an order book of Rs. 36 crores. Further, the company has shifted its focus to industrial capacity expansion projects for better margins and has planned to specialize in EPC works for higher margins.
Moreover, the company allocated Rs. 48.52 crores towards capital expenditures. As part of its growth strategy, it aims to invest between Rs. 40 and 50 crores annually in capital expenditures.
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 4.13 percent during FY 21-22 to 13.37 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 6.29 percent to 11.31 percent during the same timeframe. Additionally, the net profit margin increased from 1.85 percent during FY21-22 to 6.63 percent during FY22-23.
Headquartered in Chandigarh, Tara Chand Infralogistic Solutions was incorporated in 2012. The company is engaged in providing comprehensive infrastructural solutions to organizations through three main verticals i.e., Warehousing and Multi-modal Transportation, Construction Equipment Rental, and Turnkey Infra-Project Execution.
Written By Vaibhav Patil
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