The shares of retail chain operators hit 2 percent upper circuit after the company bagged a prestigious work order from the Government of West Bengal worth Rs 20 lakhs.
With a market capitalization of Rs 600.95 crore, the shares of Mehai Technology Ltd were trading at Rs 243.20 per share, increasing around 2 percent as compared to the previous closing price of Rs 238.45 apiece.
Reason for Rise:-
The shares of the company have seen positive movement after Mehai Technology Ltd received a prestigious work order from the Government of West Bengal’s Public Health Engineering Directorate, Alipore Division. The project involves the sinking of a 250mm x 150mm diameter, 160-meter deep tubewell using the D.R. Rig method, UPVC pipes, and pre-packed resin-bonded gravel filters. This is for the augmentation of the Shibpur Water Supply Scheme in Block Namkhana under the Kakdwip Sub-Division. The project, valued at ₹20 lakh, is part of the Jal Jeevan Mission (JJM).
Financial performance:-
Examine the company’s financial condition, revenue zoomed by 167 percent from Rs 3.81 crore in Q2FY24 to Rs 10.17 crore in Q2FY25, and during the same time frame, net profit zoomed by 247 percent from Rs 0.23 crore to Rs 0.80 crore.
Industry outlook:-
Mehai Technology operates within the electric equipment sector, which is currently experiencing robust demand due to increasing investments in infrastructure and renewable energy. This positions the company well for continued growth as these trends persist.
Ratio analysis:-
The company’s critical ratios show that the return on equity decreased from 3.82 percent in FY22-23 to 1.35 percent in FY23-24, while the return on capital employed magnified from 6.24 percent to 4.35 percent. The net profit margin (NPM) for fiscal year 23-24 is 3.87 percent.
Shareholding pattern:-
In the company’s recent shareholding pattern, the Promoters of the company own 56.33 percent while Retail shareholders own a 43.67 percent stake in the company and Foreign Institutional Investors own a 0 percent stake.
Company Profile:-
Mehai Technology Limited is an India-based company, which is specialized in information technology (IT) and IT enabled Services (ITeS) solutions and are committed with cutting edge technology solutions. The Company operates through two segments: Electronic Items, and Trading Activities.
Written by:- Abhishek Singh
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