Defence stock engaged in the manufacturing and sale of all types of marine and industrial electrical & electronic components in focus upon signing an MoU with Cummins India Limited for developing products and services catering to the Indian Navy
Price Action
With a market capitalization of Rs. 3,848 Crores, the shares of Marine Electricals Limited were trading at Rs. 290.10 per equity share, down 3 percent from its previous day’s close price of Rs. 301.85.
What Happened
Marine Electricals Limited has entered into a Memorandum of Understanding(MOU) with Cummins India Limited, for the purpose of Developing Business opportunities that would be mutually Beneficial.
This MOU would facilitate Supply, Commissioning, and after Sales Services in specific areas, Diesel Generator Sets or Integrated Propulsion and Power Generation Solutions with Conventional or Diesel-Electric Configuration for the Indian Navy in particular besides Private Ship Owners
Marine Electricals India Limited’s associate company Athmer India Private Limited is also participating in this MOU, for the Development of Special Auxiliary Machines in related fields.
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About the Company
Marine Electricals (India) Limited is an integrated technical services provider in the fields of electrical automation and information & communication technology solutions, It is engaged in the manufacturing and sale of all types of marine and industrial electrical & electronic components like switchgear, control gears, and many more.
Its business verticals include Defence & Marine Solutions, Industry Solutions, Vessel Traffic Management Systems, and Electric Vehicle Charging Solutions.
It has a strong business clientele with well-known players like Mazagon Dock Shipbuilders, Cochin Shipyard, Goa Shipyard, ONGC, Shipping Corporation of India, Garden Reach Shipbuilders & Engineers, Titagarh Rail Systems, CEAT, Suzlon, Pepsico, and many more.
Financials and Ratios
Its Revenue from operations grew by 37 percent from Rs. 101.07 Crores in Q1FY24 to Rs. 138.46 Crores in Q1FY25, accompanied by profits of Rs. 3.52 Crores to Rs. 7.05 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 11.2 percent, and a return on capital employed (ROCE) of 15.4 percent. It has reported a debt-to-equity ratio of 0.39.
Written by: Bharath K.S
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