This Ace Investor Ashish Kacholia stock which deals in the manufacturing and supply of metallic flexible flow products hit 20 percent upper circuit in intraday trade after reporting financials and announcement of capex plans approx investment of Rs. 77 crore.
Share Price Movement
In Thursday’s trading session, Aeroflex Industries Ltd‘s share price touched a day’s high of Rs. 223.20 hit a 20 percent upper circuit. The share price stayed in the upper circuit limit which was 20 percent higher than the previous closing price of Rs. 186 per share. In the past year, the stock has delivered around 37.45 percent and has outperformed the Nifty Index in the past year.
Shareholding Pattern
As of December 2024, The promoters of the company hold around 66.99 percent, FIIs hold 1.57 percent, DIIs hold 5.66 percent and the remaining 25.76 percent held by public investors. Ace Investor Ashish Kacholia held a 1.84 percent stake in the company and saw an increase from 1.81 percent in the September quarter.
What Happened
The company’s stock was in focus after it released its quarterly financials and announced capex plans.
In its latest filing for the quarter ending December 2024, the company reported a 36.46 percent rise in revenue, reaching Rs.99.79 crore compared to Rs.73.12 crore in Q3FY24. On a quarter-over-quarter basis, the operational revenue rose by 5.05 percent from Rs.94.99 crore in Q2FY25.
During the same period, net profit increased by 68.31 percent to Rs.15.2 crore in Q3FY25, compared to Rs.9.03 crore in Q3FY24, and increased by 11.35 percent from Rs.13.65 crore in Q2FY25. In Q3FY25, there is an exceptional item of Rs. 0.19 crore which is the diminution in the value of investment of its subsidiary based in the UK.
Aeroflex recognises the revenue from a single segment which is the manufacturing of products as of the September 2024 quarter.
Capital Expenditure Announcements
The company announced a total capex plan amounting to Rs. 77 crore. The S S Hose and Braiding capacity is to increase from 16.5 MMPA to 20.0 MMPA, an increase of 3.5 MMPA with an investment of Rs. 54 crores which will be funded through internal accruals. The expansion is to take place in Taloja, which is adjacent to the existing plant. The expansion plan to include Assembly Stations increases from 40 to 70.
Further, A new product “Miniature Metal Bellows”, is to be installed, with an annual capacity of 2,40,000 pieces with sizes ranging from 10mm to 50mm. This project is expected to be completed by March 2026 and the expected investment cost is projected at Rs. 23 crore for this expansion. which will be funded through internal accruals. Post expansion the capacity of Metal Bellows to be at 3,60,000 pieces per annum. The Metal Bellow product will be used for Industries like Space & Aviation, Electronics, Robotics, Semiconductors, and Hydrogen & Clean Energy.
Company Profile
Aeroflex Industries specializes in manufacturing stainless steel flexible flow solutions, including hoses and assemblies. They serve both domestic and international markets and they export to over 80 countries. The capacity utilisation of S S Hose & Braiding upto December 2024 was 85.18 percent.
Written by – Santhosh S
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