This Smallcap stock engaged in the business of providing turnkey pre-engineered steel construction solutions surged 4 percent in early trade after the company received an order worth Rs. 221 crores from Tata Projects for a Semiconductor & Li-ion Battery facility.
Price Action
With a market capitalization of Rs. 2,571.53 Crores, the shares of Interarch Building Products Limited touched a day’s high of Rs. 1,624.85 per equity share, up 4.46 percent. The stock reiterated from the day’s high and was trading at Rs. 1,525.05 which is 1.95 percent lower than its previous day’s close price of Rs. 1,555.45. The stock delivered a return of around 27.71 percent and outperformed the Nifty Index from the time of listing.
What Happened
The company’s stock surged in the early trade after they were awarded two major projects which are: First Order from TATA Semiconductor Assembly & Testing Pvt Limited, for the semiconductor manufacturing facility in Morigaon, Assam.
This project is a key initiative in India’s growing semiconductor ecosystem, aligned with the government’s vision to boost domestic electronics Manufacturing.
The second order is from Agratas Energy Storage Solutions Pvt. Ltd for the construction of India’s largest lithium-ion battery manufacturing unit which is in Sanand, Gujarat. The facility will cater to the growing energy storage market which is supporting India’s transition to sustainable energy solutions.
This is Interarch’s second lithium-ion battery manufacturing order, after Exide Energy Solutions. In both projects, TATA Projects Limited is the EPC contractor.
Management Commentary
Commenting on the order, Arvind Nanda, the Managing Director of Interarch Building Products stated, “We are proud to partner with Tata Projects Limited on these transformative initiatives. The semiconductor and energy storage sectors are pivotal to India’s economic and technological future. Our flexible and industry-agnostic infrastructure solutions ensure efficiency, reliability, and sustainability in every project we undertake. These collaborations further reflect our commitment to driving innovation and growth across new-age industries.”
About the Company
Interarch Building Products Limited is a leading provider of pre-engineered steel construction solutions in India, established in 1983. The company specializes in turnkey projects, offering integrated services from design and engineering to manufacturing and on-site project management. Its diverse product range includes metal ceilings, roofing,
and complete pre-engineered buildings (PEBs) for industrial and commercial applications. Interarch focuses on efficiency and sustainability, leveraging controlled manufacturing processes to minimize waste and reduce construction time compared to traditional methods.
Financials & Ratios
Its Revenue from operations improved by 8.54 percent year on year from Rs. 297 Crores in Q2FY24 to Rs. 323 Crores in Q2FY25, accompanied by a profit of Rs. 15.17 Crores to a profit of Rs. 20.67 Crores.
In terms of Return ratios, the return on equity (RoE) stood at 20.44 percent and a return on capital employed (RoCE) of 28.22 percent in FY24. They have a debt-to-equity ratio of 0.04 as of FY24.
Shareholding Pattern
As of September 2024, the promoters of Interarch Building Products held a share of 53.26 percent, Foreign Institutional Investors (FII) held around 5.52 percent, Domestic Institutional Investors (DII) held around 9.33 percent and the remaining 31.89 percent was held by Public Investors.
Written by Santhosh S
