The shares of heavy construction equipment manufacturers gained up to 1.4 percent after the company bagged a prestigious work order worth Rs 66 lakh.
With a market capitalization of Rs 465.75 crore, the shares of Sunita Tools Ltd were trading at Rs 828.00 per share, increasing around 0.98 percent as compared to the previous closing price of Rs 828.00 apiece.
Reason for Rise:-
The shares of the company have seen bullish movement after Sunita Tools Ltd bagged a prestigious work order from Vijaya Mettalica Incorporated for the supply of CI Casting P05863, and CI Casting C85263, the order valued at Rs 66 lakh.
Financial performance
Examine the company’s financial condition, revenue jumped by 200 percent from Rs 5.05 crore in H1FY24 to Rs 15.33 crore in H1FY25, and during the same time frame, net profit magnified by 270 percent from Rs 0.92 crore to Rs 3.41 crore.
Operational Highlights
The company installed two new machines contributing to growth in H1 FY25, with four additional machines arriving in September and in the commissioning phase. It is now debt-free after paying off its last loan in August 2024, which will reduce future bank interest costs.
Margin improvement:-
The company improved margins by directly purchasing from steel mills like ArcelorMittal and Jindal, bypassing distributor margins of 5-10%. EPS calculations included preferential shares, though they were not fully credited to buyer accounts due to delays in BSE approvals.
Recent acquisition:-
The company completed aerospace sector acquisitions, with ongoing operations in Vasai and plans for new machinery in Ahmedabad by December 2024. The Sunita Imperial Coimbatore acquisition is pending GST registration. It also identified a plot for Vasai expansion and signed an LOI for a Chennai-based manufacturing company.
Future Prospects:-
The company expects an additional ₹3 crore in revenue and ₹1 crore in profit before tax from recent acquisitions in H2 FY25. It has appointed distributors in Saudi Arabia and UAE, with orders expected in 2025, and is exploring potential aerospace acquisitions in the USA.
Growth Outlook:-
The management expects a CAGR of 60-80% over the next 3-5 years, fueled by strategic acquisitions, internal growth, and strong market demand for mould bases and precision engineering parts, positioning the company for sustained growth and market leadership.
Company snapshot:-
Sunita Tools Ltd is an India-based company, that is engaged in the manufacturing of ground plates, mold bases, and precision computerized numerical control (CNC) machining. The Company’s products serve manufacturing industries, such as automotive, pharmaceutical, electronics, consumer goods, and most of the manufacturing sectors.
Written by:- Abhishek Singh
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