The shares of the leading manufacturer of Drivetrain Parts gained up to 19 percent after the company received a significant work order worth Rs 470 crore.
With a market capitalization of Rs 300.32 crore, the shares of Emmforce Autotech Ltd were trading at Rs 146.50 per share, increasing around 3 percent as compared to the previous closing price of Rs 142.50 apiece.
Reason for Rise:-
According to the company filing, Emmforce Autotech Ltd received an order through a Project Authorization Letter from a USA Company, for the supply of products worth Rs. 470 Crores (approximately), to be supplied over the next 9 (Nine) years starting from July 2025.
Financial performance:-
Examine the company’s financial condition, revenue decreased by 13 percent from Rs 40.07 crore in H2FY24 to Rs 35.05 crore in H1FY25, and during the same time frame, net profit dipped by 17 percent from Rs 4.09 crore to Rs 3.38 crore.
Shareholding pattern:-
In the company’s recent shareholding pattern, the Promoters of the company own 73.17 percent while Retail shareholders own a 24.31 percent stake in the company and Foreign Institutional Investors own a 2.36 percent stake.
Ratio analysis:-
The company’s critical ratios show that the return on equity increased from 18.71 percent in FY22-23 to 22.14 percent in FY23-24, while the return on capital employed increased from 30.90 percent to 19.97 percent. The net profit margin (NPM) for fiscal year 23-24 is 10.65 percent.
Industry Growth Potential:-
The Indian auto component sector is expected to rise from $69.7 billion in FY 2022-23 to $200 billion in FY 2026. This expansion is fueled by a variety of sources, including growing local demand, and exports, and supporting government policies such as 100% Foreign Direct Investment (FDI) and Production Linked Incentive (PLI) programs. Emmforce, a maker of specialist automobile drivetrain parts, hopes to gain from this strong market growth.
Company Profile:-
Emmforce Autotech Ltd manufactures automotive drivetrain parts, specializing in products for 4-wheel drive and performance racing vehicles. They excel in engineering solutions, from conceptualization to manufacturing.
Written by:- Abhishek Singh
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