Shares of this smallcap company jumped 1 percent in Monday’s trading session after receiving an order worth Rs. 53 crores from the Government of Odisha. The stock has delivered more than a 50 percent return to its shareholders in one year.
Price Movement:
With a market capitalization of Rs. 6,834 crores, the shares of Surya Roshni Ltd started Monday’s trading session on a higher note at Rs. 630.25 compared to its previous close of Rs. 624.60. During the trading session, the shares hit a high of Rs. 638.80, gaining around 1 percent and closed the day at Rs. 624.05 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had an order amounted to Rs. 53 crores from OUTDF, Government of Odisha for installation work in retrofitting stretches in 16 Urban Local Bodies (ULBs) – Cluster C for implementation in LED public street lighting projects in Odisha.
Financial:
Looking at the company’s financial statements, the revenue jumped by 7 percent from Rs. 1,938 crores during the December quarter to Rs. 2,080 crores in the March quarter. In addition, the net profits surged 16 percent from Rs. 90 crores to Rs. 104 crores during the same timeframe.
Order Book:
As of March 31, 2024, the company has an order book of around Rs. 800 crores in hand from the Oil & Gas sector, Water Sector and Exports business, which provides good revenue visibility over the short to medium term.
Future Outlook:
The company intends to invest Rs. 500 crores over the next two years to expand its capacity from 1.2 million to 2 million tons.
Additionally, it anticipates a volume growth of 15 percent to 18 percent in FY 25 and a comparable increase in FY 26. Furthermore, it targets an EBITDA range of Rs. 5,400 to Rs. 5,500 for FY 25 and aims for Rs. 6,500 to Rs. 7,000 in the long term.
Prominent Investor:
According to the BSE data, Ace Investor Mr Mukul Agrwal, entering the stock in September 2022, currently holds 15 lakh equity shares equivalent to a 1.38 percent stake in this company. The current holding value of his investment amounts to Rs. 94.1 crores.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 15.19 percent and a return on capital employed (RoCE) of 20.66 percent for the period spanning FY23-24. Further, the net profit margin stood at 4.21 percent during the same timeframe.
Company Profile:
Headquartered in Delhi, Surya Roshni Limited incorporated in 1973 has emerged as India’s largest ERW Pipes exporter, largest GI Pipes producer, and the second largest in the lighting segment. Its focus is on developing the value-added product mix.
Written By Vaibhav Patil
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