Textile stock engaged in manufactures and sale of textile machinery and yarns inclined nearly 7 percent to Rs.52 per share following an increase in net profits of nearly 1000 percent year-on-year.
Price Movement
In Tuesday’s trading session, the share price of Meera Industries Ltd increased nearly 6.5 percent to Rs.52 per share from its previous close of Rs.48.84 apiece.
Financials
The surge in the stock price was driven by remarkable revenue and net profit growth. Meera Industries Ltd reported consolidated revenue of Rs.9.91 crores for the quarter ending June 2024, marking a 61.1 percent increase from Rs.6.15 crores in the same quarter last year. Quarterly, the company reported a rise in revenue of 3.3 percent from Rs.9.59 crores in Q4 FY24.
In terms of Profit After Tax (PAT), Meera Industries Ltd saw a staggering 1000 percent year-over-year increase, reaching Rs.0.9 crores in Q1 FY25, up from Rs.0.082 crores in the June 2023 quarter. Additionally, PAT improved significantly by 50.77 percent from Rs.0.5969 crores in Q4 FY24.
Meera Industries Ltd demonstrated impressive growth in financial ratios. Its price-to-earnings ratio stands at 35.65, lower than the industry average of 49.15. The company showcases a strong current ratio of 2.81 and a debt-to-equity ratio of 0.16, reflecting strong liquidity.
In terms of return ratios, the Return on Capital Employed (ROCE) and Return on Equity (ROE) stand at 5.84 percent and 5.69 percent, respectively.
Segmental Revenue Mix
Meera Industries Ltd operates across three key business segments: Textile Machinery division, Yarn division, and Plastic Division. For the quarter ended June 2024 the company generated approximately 76.5 percent of its revenue from the Machinery segment and 23.5 percent from its Yarn segment. Plastic segment did not contribute to revenue in the particular quarter.
Dividends
On August 12, 2024, the Board declared an interim dividend of Rs.0.50 per equity share (5 percent) for FY 2024-25, payable within 30 days to all shareholders, who have waived their dividend rights. The record date for this dividend is August 23, 2024.
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Shareholding Composition
As per the June 2024 shareholding pattern, the promoters of Meera Industries Ltd hold a 64.19 percent stake, while Retail investors hold 35.81 percent stake.
About the company
Meera Industries Ltd specialises in twisting, cabling, winding, and heat setting machines for the textile industry, focusing on designing, developing, and selling these machines to processing and manufacturing units.
Written by – Siddesh S Raskar
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