The shares of this microcap company locked a 5 percent upper-circuit after receiving an order worth over Rs. 600 million from Reliance Industries Ltd.
Price Movement:
With a market capitalization of Rs. 89.5 crores, the shares of IFL Enterprises Ltd started Monday’s trading session on a lower note at Rs. 1.10 compared to its previous close of Rs. 1.15. During the trading session, the shares clocked a 5 percent upper circuit at Rs. 1.20 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had one of its subsidiaries Yamunashtakam Tradeventures Private Limited secured a substantial order from Reliance Industries Limited worth over Rs. 600 million (Rs. 60 crores) for the provision of construction supplies required at Reliance Industries Limited’s Jamnagar Plant.
Furthermore, the company anticipates receiving additional orders from Reliance Industries Limited in the forthcoming quarter, which is expected to bolster its revenue and strengthen its market position.
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Financials:
Looking at the company’s financial performance, the revenue decreased by around 3 percent from Rs. 2.05 crores during the December quarter to Rs. 1.99 crores in the March quarter. On the other hand, the net profits showcased a transition from a net profit of Rs. 88 lakhs to a net loss of Rs. 68 lakhs.
Recent Developments:
The company is entering the international trading of agro commodities, gemstones, and precious metals through its subsidiary based in Dubai. This diversification aims to leverage global market opportunities and enhance the company’s revenue streams.
Additionally, the company has successfully eliminated all outstanding debts, ensuring a solid financial standing and bolstered stability.
Recently, the company announced the issue of bonus shares, which are additional shares given to existing shareholders at no extra cost. Specifically, for every 150 shares a shareholder owns, they will receive 1 bonus share of Rs. 1 each.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 3.29 percent and a return on capital employed (RoCE) of 4.95 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 10.25 percent.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters hold a modest 2.76 percent of the shares, with the remaining 97.23 percent being held by Retail Investors.
Company Profile:
IFL Enterprises Ltd is a diversified company primarily engaged in the acquisition and trading of financial instruments such as shares, stocks, and bonds.
Additionally, the company is involved in the trading of paper and stationery products, offering a wide range of items including various types of writing paper, coated paper, and notebooks.
Written By Vaibhav Patil
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