Shares of this multibagger small-cap stock hit the 5 percent upper circuit in Friday’s trading session after the company secured orders worth Rs 104.25 crores from TATA Projects and other entities. In the past six months, the company’s stock has jumped nearly 55 percent for its stakeholders.
With a market capitalization of Rs 1,347.47 crores, the stocks of Marine Electricals (India) Limited started their trading session on Friday in the green at Rs 99.20 and, after a couple of trading hours, are locked in its 5 percent upper circuit registered at Rs 104 apiece.
Such a sudden spike in the company’s share price was observed after the company, via a recent regulatory filing with the National Stock Exchange (NSE), intimated the receipt of orders worth Rs 104.25 crores (excluding taxes) from a couple of entities.
Firstly, the company received an order from “TATA Projects Limited” for LT Panel (PCC Panel, Sub Panel, and Hookup Panel) for ‘Micron Technology’ in Sanand, Gujarat. The delivery of the same is to be completed over a period of 6 Months.
Secondly, the company received an order from the ‘Fleet Maintenance Unit’ (FMU), Visakhapatnam for AIAMC. The delivery of the same is to be completed over a period of 24 Months.
Having a glance at the consolidated financials reported during the recent quarters, the prime indicators of business such as operating revenues as well as after-tax profits delivered consistent growth in numbers.
The former rose from Rs 137 crores during the September 2023 quarter to Rs 146 crores during the December 2023 quarter, and the latter, during the same time period, took a marginal upward shift from Rs 4 crores to Rs 5 crores.
In addition, the company’s annual performance has been on an improving path with the return ratios, viz, return on equity (RoE) and return on capital employed (RoCE), shifting up consistently. The former rose from 7.43 percent during FY22 to 8.15 percent during FY23 and the latter increased from 14.11 percent to 14.47 percent keeping the same timeframe.
Keeping a purview of a year, the company’s stock has delivered multibagger returns of approximately 162 percent to its shareholders, viz, if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.62 lakhs.
Founded in 1978, Marine Electricals (India) Limited is an India-based company engaged in the business of manufacturing & selling various marine/ industrial electricals and electronic components within as well as outside India.
Written by Amit Madnani
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