The shares of the adhesive tape manufacturer gained up to 16 percent after the company announced a joint venture agreement with SJ Korea Co. Ltd to promote their product in india as well as globally.
With a market capitalization of Rs 186.67 crore, the shares of Srivasavi Adhesive Tapes Ltd closed at Rs 131.70 per share, increasing around 12.28 percent as compared to the previous closing price of Rs 117.30 apiece.
According to the company filing, Srivasavi Adhesive Tapes Ltd has signed a letter of intent with S J Korea Co. Ltd to work and synergize to form a Joint Venture Agreement to promote their product in india as well as the global market.
Moreover, to capitalize on India’s rising demand for the aforementioned items and support the make in India initiative, a joint venture business will be founded in India with mutual understanding to manufacture the products.
Furthermore, Srivasavi Adhesive Tapes Ltd will promote the products in railways, metros, high-speed trains, electric vehicles, and businesses such as aviation and shipbuilding, among others. SJ Korea will promote products such as specialty tapes and adhesives, die-cuts, and aluminum extrusions with their customers, and Srivasavi Adhesive Tapes Limited will assist them in doing so.
Looking into the company’s finances, Srivasavi Adhesive Tapes Ltd’s revenue increased by 2.5 percent from Rs 63.44 Crore in Q3FY23 to 59.18 Crore in Q3FY24. During the same period, net profits are stable at Rs 3.62 crore.
The company’s profitability measures show a decline in return on equity (RoE) from 40.20 percent in FY 21-22 to 18.26 percent in FY 22-23, while, during the same period return on capital employed (RoCE) increased from 37.93 percent to 22.89 percent. In contrast, the net profit margin (NPM) was 6.12 percent in fiscal year 22-23.
Srivasavi Adhesive Tapes Limited is an India-based firm that provides pressure-sensitive specialized adhesive tapes and die-cuts for a wide range of industrial applications. Its unique solutions are created from a variety of carrier materials, including film, foil, foam, cloth, and paper.
Written by:- Abhishek Singh
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