The shares of this smallcap company locked a 5 percent upper circuit after receiving an order worth Rs. 267.60 crores from Cochin Shipyard Ltd. On a YTD basis, the stock has delivered a multibagger return of 101 percent to its shareholders.
Price Movement:
With a market capitalization of Rs. 1,644 crores, the shares of CFF Fluid Control Ltd started Friday’s trading session on a higher note at Rs. 844.35, clocking a 5 percent upper circuit compared to its previous close of Rs. 804.15 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received the LOI for Procurement of Low-Frequency Variable Depth Sonar (LFVDS) for Yard 523-528 from Cochin Shipyard Ltd, Kochi totaling approx. Rs. 267.60 crores.
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Financials:
Looking at the company’s financial statements, the revenue decreased by 20 percent from Rs. 59 crores during H1FY24 to Rs. 47 crores in H2FY24. On the other hand, the net profits decreased by 30 percent from Rs, 10 crores to Rs. 7 crores during the same timeframe.
Recent Development:
Earlier, CFF Fluid Control received the LoI for Procurement of Low-Frequency Variable Depth Sonar (LFVDS) for Yard 3029-3034 (ASW SWC) from Garden Reach Shipbuilders & Engineers Ltd totalling approx. Rs. 266.94 crores.
Important Financial Ratio:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 13.56 percent and a return on capital employed (RoCE) of 19.93 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was at 15.99 percent.
Future Outlook
The company plans to migrate from the SME exchange to the main board of the stock exchange in 2-3 years. Further, CFF intends to leverage and expand its partnerships with international companies like Naval Group, Nereides, and Issartel to bring advanced technologies to India and potentially export to international markets.
Customer Base:
The company manufactures critical component systems and test facilities for submarines and surface ships for the Indian Navy.
Moreover, CFF Fluid Control was incorporated with the purpose of having a dedicated new entity focused on meeting the growing requirements of the Indian Navy, Mazagaon Dockyard, and Shipbuilders Limited.
Company Profile:
Headquartered in Maharashtra, CFF Fluid Control Limited was incorporated in 2012. The company is primarily engaged in the business of manufacturing and servicing shipboard machinery. The company also designs, manufactures and services Mechanical equipment and systems for industries like Nuclear and Clean Energy.
Written By Vaibhav Patil
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