The shares of this microcap company jumped around 7 percent in Monday’s trading session after the board announced a preferential issue of equity shares to certain allottees, including prominent investor Ashish Rameshchandra Kacholia.
Price Movement:
With a market capitalization of Rs. 196 crores, the shares of Naman In-Store (India) Ltd started Monday’s trading session on a flatter note at Rs. 180 compared to its previous close of Rs. 181.50. During the trading session, the shares hit a high of Rs. 194.90, gaining around 7 percent and are currently trading at Rs. 190 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company announced the allotment of equity shares on a preferential basis.
The company announced the allotment of 25,17,980 equity shares at a price of Rs. 139 each of the face value of Rs. 10 each, including a premium of Rs. 129 per equity share, aggregating to over Rs. 34.99 crores.
This issuance was carried out on a preferential basis, meaning the shares would be allocated to select investors rather than being available to the general public.
According to the allottees list published by the company, Mr Ashish Rameshchandra Kacholia has been offered 10,79,135 shares or an 8.26 per cent stake. His investment in this allocation will amount to approximately Rs. 15 crore.
Financials:
Looking at the company’s financial performance, the revenue decreased by around 16 percent from Rs. 79 crores during H1FY24 to Rs. 66 crores in H2FY24. On the other hand, the net profits declined by 33 percent from Rs. 6 crores to Rs. 4 crores during the same period.
Product Portfolio:
Retail segment:
The company offers complete solutions for retail furniture and fixtures designed to meet the growing demands of modern-day businesses.
It manufactures furniture for different types of retail outlets like Beauty shops, Paint Shops, Fashion Apparel Outlets, etc. Additionally, it designs and develops furniture for residential use, as well as for colleges, schools, libraries, laboratories, and research institutions.
Industrial Segment:
Naman In-Store (India) Limited also specializes in manufacturing and supplying a diverse range of metal industrial products, including Electrical Control Panels, Petrol Pump Kiosks, HVAC Outer Housing, Battery Racks, UPS Cabinets, and Server Racks.
Recent Developments:
Recently, Naman In-Store (India) Ltd has announced the acquisition of pilot export orders valued at approximately Rs. 2.40 crores.
This development is part of a broader strategy aimed at expanding its international presence, particularly targeting clients in Europe, the Middle East, and the USA.
The company anticipates a significant increase in export orders as global players shift their focus to India, driven by the China Plus One strategy.
Moreover, the company also received two substantial new orders from esteemed and renowned brands, each valued at approximately 6 crores for manufacturing of Retail Shop Fixtures.
These orders enhance the company’s strong and healthy unexecuted order book, which now totals around 25 crores.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 24.23 percent and a return on capital employed (RoCE) of 35 percent for the period spanning FY23-24. Further, during the same period, the net profit margin stood at 6.40 percent.
Company Profile:
Established in 2010, Naman In-Store (India) Limited is a retail furniture and fittings company providing retail solutions to various industries and retail outlets.
Written By Vaibhav Patil
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