The shares of microcap stock hit 5 percent upper circuits of Rs 44.13 apiece after the company received approval from board members for the fundraising of up to Rs 1,000 crore.
BGR Energy Systems Limited has a market capitalization of Rs 318.45 crore, the shares were trading at Rs 44.13 per share, increasing around 5 percent as compared to the previous closing price of Rs 42.03 apiece.
Matter explanation:-
The shares of the company have seen such a bullish movement since BGR Energy Systems Limited’s board of directors considered and approved the offer and issuance of equity shares of the face value of Rs 10 each of the company for an aggregate amount, including premium, not exceeding Rs 1,000 crores by way of a rights issue to the eligible equity shareholders of the company.
Financial performance:-
Looking forward to the company’s financial condition, revenue increased slightly by 59 percent from Rs 107 crore in Q4FY23 to Rs 170 crore in Q4FY24, net profit increased by 155 percent from a loss of Rs 218 crore to a profit of Rs 120 crore.
Ratio analysis and Shareholding partten:-
The company’s profitability measures show an incline in return on equity (RoE) from negative 527.87 percent in FY 22-23 to 0.00 percent in FY 23-24, while, during the same period return on capital employed (RoCE) increased from (46.99) percent to 603.11 percent. In contrast, the net profit margin (NPM) was (75.15) percent in fiscal year 23-24.
As of March 2024, the firm’s shareholding pattern stood at 51.01 percent for promoters, 48.67 percent for the public, 0.08 percent for foreign institutional investors, and 0.26 percent for domestic institutional investors.
Company snapshot:-
BGR Energy Systems Limited manufactures capital equipment for power plants, petrochemicals, refineries, and process industries. It carries out the turnkey balance of plant (BOP) and engineering procurement and construction (EPC) contracts for power plants. It operates in two segments: capital goods and construction and EPC contracts.
Written by:- Abhishek Singh
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