Shares of this microcap company clocked 5 percent upper circuit after receiving an order for the construction of a New Industrial Warehouse and Softmist Plant worth Rs. 3.10 crores. The shares have delivered a whopping return of 250 percent to its shareholders in one year.
With a market capitalisation of Rs. 46.9 crores, the shares of Conart Engineers Ltd started Tuesday’s trading session on a higher note at Rs. 146 compared to its previous close of Rs. 142.20. Within a few minutes of the opening bell, the shares locked 5 percent upper circuit at Rs. 149.30 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had received a work order from Amneal Pharmaceuticals Private Limited, Vadodara. for the construction of a New Industrial Warehouse and Softmist Plant at Pipan, Sanand, Dist. Ahmedabad, Gujarat worth Rs. 3.10 crores.
Looking at the company’s financial statements, the revenue zoomed by 92 percent from Rs. 13.77 crores during the December quarter to Rs. 26.44 crores in the March quarter. In addition, the net profits surged by 54 percent from Rs. 1.16 crores to Rs. 1.79 crores during the same period.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 7.81 percent during FY 22-23 to 10.61 percent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 10.04 percent to 12.20 percent during the same timeframe. Furthermore, the company has a debt-to-equity ratio of ‘zero’ which means that the business hasn’t relied on borrowing to finance operations.
Conart Engineers completed several major projects including residential projects such as Bombay Shopping Centre, Pancharatna, and Nakshatra Apartments, as well as industrial construction projects for the textile, pharmaceutical, and chemical industries.
The company maintains a broad clientele spanning multiple sectors such as residential, commercial, and infrastructure projects. Key clients include prominent entities like Asian Paints, Lupin Gujarat Alkalies & Chemicals Limited, IPCL, Laffans Petrochemicals Ltd, among others.
According to the latest shareholding pattern, the Promoters retain 44.55 percent ownership and the remaining 55.45 percent of shares are in the hands of Retail Investors.
Headquartered in Mumbai, Conart Engineers was incorporated in 1973. The company is primarily in the business of industrial civil construction projects for the textile, pharmaceutical, heavy engineering, chemical industries, commercial complexes, multi-storey buildings, effluent treatment systems, etc, which involve civil and structural work, sanitary and plumbing work, etc.
Written By Vaibhav Patil
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