The shares of this smallcap company locked a 5 percent upper circuit after receiving an order worth 2.99 crores for the supply of LT Panels. In one year, the stock has delivered a multibagger return of 280 percent to its shareholders.
Price Movement:
With a market capitalization of Rs. 3,299 crores, the shares of Marine Electricals (India) Ltd started Tuesday’s trading session on a lower note at Rs. 233 compared to its previous close of Rs. 236.84. During the trading session, the shares clocked a 5 percent upper circuit at Rs. 246.68 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received an order amounting to Rs. 2.99 crores from Concept Engineering Projects Private Limited for supply of LT Panels. The delivery shall be over a period of 3 months.
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Financials:
Looking at the company’s financial statements, the revenue jumped by around 62 percent from Rs. 146.65 crores during the December quarter to Rs. 237.08 crores in the March quarter. In addition, the net profits zoomed by 129 percent from Rs. 5.32 crores to Rs. 12.18 crores during the same timeframe.
Recent Development:
Earlier, Marine Electricals had received an order amounting to Rs. 20.40Cr from L&T Shipbuilding, for supply of Integrated Bridge System (IBS). The delivery shall be over a period of 14 to 15 months.
Key clients:
The company serves a diverse clientele, including the Indian Navy, commercial shipyards, and various industrial sectors such as oil and gas, pharmaceuticals, and automotive industries.
Some of the key customers of Marine Electricals in the Marine Segment are BHEL, HSL, SCI, Viking, Abu Dhabi shipping building, etc. and clients in the industrial segment are, TATA Communication, IBM, Cipla, Lodha, and a few more.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 10.33 percent and a return on capital employed (RoCE) of 16.86 percent for the period spanning FY23-24. Furthermore, the net profit margin during FY23-24 was 4.11 percent.
Shareholding Pattern:
According to the latest shareholding pattern, Promoters possess 71.17 percent of the shares, while Foreign Institutional Investors (FIIs) hold 0.15 percent, Domestic Institutional Investors (DIIs) maintain an 0.11 percent stake, and Retail Investors account for the remaining 28.56 percent.
Company Profile:
Headquartered in Mumbai, Marine Electricals (India) Ltd was incorporated in 1978. The company is an integrated technical services provider in the fields of electrical automation and information and communication technology solutions.
They are engaged in the manufacturing and sale of all types of marine and industrial electrical and electronic components like switch gears, and control gears.
Written By Vaibhav Patil
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