Shares of this multibagger cable stock hit its 5 percent upper circuit in Friday’s trading session after the company signed a Memorandum of Understanding (MoU) with a Norway-based Clean Tech company to develop as well as commercialize Fuel Cell Technology.
With a market capitalization of Rs 1,377.82 crores, the stocks of Advait Infratech Limited opened their trading hour on Friday at Rs 1,350.80, and, after some volatility in the stock, it bounced back to the same share price level, hitting its 5 percent upper circuit compared to the previous closing levels of Rs 1,286.50 apiece.
Such sharp share price movements were observed today after the company, via a recent regulatory filing with the Bombay Stock Exchange (BSE), announced that it has successfully signed a Memorandum of Understanding (MoU) with “TECO 2030”, a Norwegian-based clean-tech Company.
As per the agreement signed, Advait Infratech Limited (AIL) and TECO 2030 intend to establish a joint venture in India to exclusively authorize the development, manufacturing, and commercialization of the ‘Fuel Cell’ Technology of TECO 2030 within the Indian as well as the SAARC market.
During the recent financial quarters, the company’s basic business indicators, viz, its operating revenues as well as after-tax profits, reported a jump in numbers with the former taking an upward shift from Rs 47.98 crores during Q2FY24 to Rs 72.51 crores during Q3FY24, and the latter, during the same period, moved up from Rs 4.98 crores to Rs 7.73 crores.
Keeping a purview of the last six months, the company’s stock has proven to deliver multibagger returns of approximately 240 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 3.40 lakhs.
According to the latest presentations as of the December 2023 quarter, the company’s total order book stands at approximately Rs 173 crores. Out of the same, the majority contribution is by the ‘EPC’ orders, followed by the ‘Manufacturing’ orders, orders from ‘overseas’, and ‘Green Hydrogen’ orders.
Advait Infratech Limited is an India-based company supplying tools and equipment for the construction of transmission lines. Various products and solutions offered by the company include optical fibre ground wires, OFC cables, insulators, earthing Solutions, and many more.
Written by Amit Madnani
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