During Wednesday’s trading session, the shares of one of the leading manufacturers specialising in rubber and steel-based industrial conveyor belts surged nearly 5 percent to Rs. 156.9 on BSE, after the company secured orders worth more than Rs. 16 crores in September from NTPC, NLC and others.
With a market capitalisation of Rs. 184.2 crores, at 01:43 p.m., the shares of Somi Conveyor Beltings Limited were trading in the green at Rs. 156.35, up by nearly 4.6 percent, as against its previous closing price of Rs. 149.5.
What’s the News:
According to the latest regulatory filings with the stock exchanges, Somi Conveyor Beltings Limited secured orders totalling Rs. 16.186 crores during the September month.
On the 1st and 24th of September, the company received orders worth a total of ~Rs. 5.35 crores from NTPC Limited, while Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) awarded contracts totalling nearly Rs. 7.75 crores.
The remaining orders, valued at around Rs. 3.07 crores, were received from The West Bengal Power Development Corporation Limited and NLC Tamilnadu Power Limited.
Previous Orders:
Earlier on March 13th, Somi Conveyor Beltings Limited received a contract from NLC India Limited for the manufacture and supply of Steel Cord Conveyor Belts.
The order required the company to deliver 30,200 meters of Steel Cord Conveyor Belts at a unit price of Rs. 20,959, totalling nearly Rs. 6.32 crores.
Financials:
The company reported a marginal decrease in revenue from operations, experiencing a year-on-year decline of nearly 9 percent, falling from Rs. 16.8 crores in Q1 FY24 to Rs. 15.23 crores in Q1 FY25.
During the same period, the company’s net profit fell from Rs. 2 crores to Rs. 0.74 crores, representing a decline of 63 percent YoY.
On a year-on-year basis, the EBITDA increased from Rs. 8 crores in FY23 to Rs. 8.75 crores in FY24, registering a growth of 9.4 percent YoY, while the company’s EBITDA margins grew to 8.57 percent from 8.52 percent, over the same period.
Future Growth:
Somi Conveyor Beltings Limited has about Rs. 105.2 crores value orders in hand, with an additional ~Rs. 14.54 crores worth of orders expected to be received soon. The company anticipates a strong order position for 2024, with hopes for increasing profit margins as well.
The company is actively upgrading its machinery and is now planning to enhance production capacity, having recently placed orders for new equipment.
Stock Performance
The stock has delivered multibagger returns of nearly 153.4 percent of returns in one year, and around 16.8 percent returns in the last six months. So far in 2024, the shares of Somi Conveyor Beltings have given positive returns of about 70 percent.
About the Company:
Established in 2000, Somi Conveyor Beltings Limited is one of the leading Conveyor belt manufacturing companies in India offering a comprehensive range of conveyor belts, including the next-generation Somiflex series, serving industries like mining, cement, steel and power plants.
The company’s product portfolio includes general-purpose conveyor belts of M24 grade, heat-resistant conveyor belts, fire-resistant conveyor belts, oil-resistant conveyor belts, special-purpose conveyor belts, and steel conveyor belts.
Written by Shivani Singh
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