Shares of this microcap company surged around 11 percent in Wednesday’s trading session after receiving multiple orders from Sony India and other entities.
With a market capitalization of Rs. 139.03 crores, the shares of Transteel Seating Technologies Ltd started Wednesday’s trading session on a flatter note at Rs. 63 compared to its previous close of Rs. 62.80. During the trading session, the shares hit a high of Rs. 69.30, gaining around 11 percent and are currently trading at Rs. 68.90 apiece.
The bullish movement in the share price was observed after the company announced in an exchange filing that it had received multiple work orders. These include an order from Workshaala Spaces for 5,239 chairs and 5,181 workstations totalling Rs. 5.77 crores, and an order from Sony India Limited for 1,787 chairs, 1,213 workstations, and furniture fixtures totalling Rs. 3.14 crores.
Additionally, the company secured an order from M4 Projects & Infrastructure for 1,196 workstations totalling Rs. 97.3 lakhs, and another from Flipspaces Technology Labs for 2,931 chairs totalling Rs. 1.19 crores.
Looking at the company’s financial statements, the revenue zoomed by 39 percent from Rs. 31 crores during H1FY24 to Rs. 43 crores in H2FY24. In addition, the net profits magnified by 75 percent from Rs. 4 crores to Rs. 7 crores during the same period.
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 28.88 percent during FY 21-22 to 59.14 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 20.06 percent to 41.86 percent during the same timeframe. Furthermore, the net profit margin increased from 5.68 percent during FY21-22 to 15.28 percent during FY22-23.
According to the latest shareholding pattern, the Promoters hold 51.28 percent of the stakes, FIIs hold 1.24 percent, DIIs possess 2.71 percent, and the remaining 44.77 percent of the shares are with retail investors.
The company has experience centres in Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Mumbai and Pune and its customer list includes Infosys, Bosch, ITC, Titan, American Express, Volvo and many more.
Headquartered in Bangalore, Transteel Seating Technologies was incorporated in 1995. The company is a known furniture provider with over 20 years of corporate and B2B experience. The Company has developed the skill and expertise in making chairs, office furniture, and other residential and commercial furniture.
Written By Vaibhav Patil
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