The shares of the Micro-cap company, a renowned manufacturer specializing in high-quality steel cord conveyor belts, are in focus upon receiving a work order from NLC India and Maharashtra State Power Generation worth Rs. 48.64 Crores.
Price action
With a market capitalization of Rs. 219.63 crores on Friday, the shares of Somi Conveyor Beltings Limited declined upto 2.07 percent, making a low of Rs. 186.45 per share compared to its previous closing price of Rs. 190.40 per share.
What Happened
Somi Conveyor Beltings Limited, engaged in manufacturing high-quality steel cord conveyor belts, has received work orders from NLC India, a Navaratna Government of India enterprise, and Maharashtra State Power Generation Co. Ltd.
The first order, valued at Rs. 4,780.51 lakhs, was received from NLC India for the supply of 24,300 meters of steel cord conveyor belts (2000mm, ST-3150, Dia 7.6mm, NOC 130, Top 14mm, Bottom 10mm, Grade Din-X) at a unit rate of Rs. 19,672.89. whichis to be executed by 07 to 08 Months
The second order was received from Maharashtra State Power Generation Co. Ltd for Rs. 84.03 Lakhs to supply of 3,000 meters of nylon conveyor belts (1000MX1000X4PLYX5 +2 for CSTPS 210 MW) and 750 meters of the same specification for NTPS 210 MW, at a unit rate of Rs. 1,899.00, whichis to be executed by 03 to 06 Months
About the company
Somi Conveyor Beltings Ltd is a renowned manufacturer specializing in high-quality steel cord conveyor belts. Established in 2000, the company operates two state-of-the-art manufacturing plants in Jodhpur, Rajasthan, equipped with fully automated, PLC-based machinery. With an annual production capacity of 900,000 meters, Somi Conveyor Beltings offers a diverse range of conveyor belts under the brand name ‘Somiflex’.
Product Profile and Offering
Somi Conveyor Beltings Ltd’s product portfolio includes general-purpose, heat-resistant, fire-resistant, oil-resistant, and steel cord conveyor belts. Additionally, they offer specialized belts such as bulletproof (Aramid fabric), chevron, rough top, and pipe conveyor belts, catering to industries like cement, sponge iron, power, and mining sectors.
Key Insights
The company seems to be financially strong with a low debt-to-equity ratio of 0.19, indicating less reliance on debt. A PEG ratio of 0.90 suggests the stock may be undervalued. It has also shown solid performance, with an average 3-year revenue growth of 21.28 percent and net profit growth of 38.44 percent.
Financials
The company’s revenue rose by 47.29 percent from Rs. 18.84 crore to Rs. 27.75 crore in Q3FY24-25. Meanwhile, the Net profit rose from Rs. 0.76 crore to Rs. 1.48 crore during the same period.
Written by Sridhar J
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