The shares of this microcap company locked a 5 percent upper-circuit in Friday’s trading session after announcing a record date for a 5:1 stock split. In one year, the stock has delivered more than a 20 per cent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 61 crores, the shares of Sacheta Metals Ltd started Friday’s trading session on a higher note at Rs. 24.42, clocking a 5 percent upper circuit compared to its previous close of Rs. 23.26 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced October 19, 2024, will be the record date for determining the entitlement of equity shareholders for the sub-division or split of existing equity shares in a 1:5 ratio.
Specifically, each equity share with a face value of Rs. 10 will be split into 5 equity shares with a face value of Rs. 2 each, fully paid up.
Financials:
Looking at the company’s financial statements, the revenue decreased by 4 percent from Rs. 18.25 crores during the March quarter to Rs. 17.61 crores in the June quarter. On the other hand, the net profits declined by 61 percent from Rs. 87 lakhs to Rs. 34 lakhs during the same period.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 3.89 percent and a return on capital employed (RoCE) of 7.11 percent for the period spanning FY23-24. Further, the net profit margin stood at 2.59 percent during the same timeframe.
Recent development:
Earlier, the company received an additional new export order valued at Rs. 56 million for the export of aluminium utensils. The shipment for this order is expected to be completed within 120 days.
This order follows a previous announcement regarding another export order worth Rs. 57 million, indicating a strong demand for the company’s products in international markets.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters hold a stake of 55.48 percent, and Retail Investors hold the remaining 44.51 percent stake.
Company Profile:
Sacheta Metals Ltd is primarily engaged in the manufacturing and exporting of aluminium, stainless steel, and mild steel products. The company specializes in a range of housewares and kitchenware, including utensils, cookware, and various metal products.
Written By Vaibhav Patil
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