Shares of this smallcap company surged 17 percent in Tuesday’s trading session after reporting an increase in net profits by 129 percent YoY. In one year, the shares have delivered a multibagger return of 141 percent to its shareholders.
With a market capitalization of Rs. 1,054 crores, the shares of Selan Explorations Technology Ltd started Tuesday’s trading session on a higher note at Rs. 648 compared to its previous close of Rs. 605.50. During the trading session, the shares hit a high of Rs. 726.60, gaining 17 percent and are currently trading at Rs. 688 apiece.
Such a positive movement in the share price was observed after the company announced its quarterly and financial year ended 31st March 2024 results. The revenue increased by 26 percent from Rs. 44.74 crores during the December quarter to Rs. 56.28 crores in the March quarter. In addition, the net profits magnified by 103 percent from Rs. 6.03 crores to Rs. 12.25 crores during the same period.
Comparing these metrics on a YoY basis, the revenue zoomed by 104 percent from Rs. 27.56 crores in Q4FY23 to Rs. 56.28 crores during Q4FY24. On the other hand, the net profits surged by 129 percent from Rs. 5.35 crores to Rs. 12.25 crores during the same timeframe.
The company operates 3 onshore Contract Areas in the prolific Cambay Basin, with 100 percent Participating Interest in Bakrol, Lohar and Karjisan Contract Areas. Moreover, a significant portion of the company’s revenue stems from its involvement in crude oil exploration.
According to the BSE data, Ace Investor Mrs Dolly Khanna entered the stock in March 2024, by acquiring approximately 1.56 lakh equity shares equivalent to a 1.03 percent stake in this company. The current holding value of his investment amounts to Rs. 10.9 crores.
The Ace investor had previously entered into the company’s shares in June 2018 but divested entirely from the position by September 2018.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 3.03 percent during FY 21-22 to 8.96 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 3.86 percent to 11.71 percent during the same timeframe. Furthermore, the net profit margin increased from 12.85 percent during FY21-22 to 26.16 percent during FY22-23.
Headquartered in New Delhi, Selan Explorations Technology was incorporated in 1985. The company is engaged in the business of Oil and Gas exploration and production. The company holds a portfolio of three oil and gas fields in Bakrol, Lohar, and Karjisan, located in Gujarat.
Written By Vaibhav Patil
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