Shares of this micro-cap company jumped upto 5 percent after receiving an order worth Rs. 88.75 crores from the Ministry of Defence. In one year, the shares have delivered a multibagger return of 200 percent to its shareholders.
With a market capitalization of Rs. 521 crores, the Krishna Defence & Allied Industries Ltd shares started Thursday’s trading session on a higher note at Rs. 446 compared to its previous close of Rs. 427.95. During the trading session, the shares hit a high of Rs. 450, gaining around 5 percent and are currently trading at Rs. 432 apiece.
According to the exchange filing, the company bagged an order from the Ministry of Defence for the supply of special steel products used to construct Coast Guard Vessels worth Rs.88.75 crores and orders are to be executed in 8 months. During the current financial year, the company has an order book of Rs. 184.62 crores.
Coming onto the company’s financial statements, the revenue decreased by 20 percent from Rs. 44.10 crores during H2FY23 to Rs. 35.23 crores in H1FY24. In addition, the net profits declined by 28 percent from Rs. 3.66 crores to Rs. 2.63 crores during the same period.
Furthermore, the company is primarily focused on manufacturing a wide range of equipment for Defence, Security, Dairy, and Mega Kitchen verticals, showcasing its in-house capabilities in the design, development, and production of various products.
Due to an increase in operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 11.60 percent during FY 21-22 to 16.31 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 12.37 percent to 15 percent during the same timeframe. Furthermore, the net profit margin increased from 4.93 percent during FY21-22 to 8.33 percent during FY22-23.
According to the latest shareholding pattern, the Promoters have 61.29 percent of stakes and the remaining 38.71 percent of shares are with the Retail Investors.
Headquartered in Mumbai, Krishna Defence and Allied Industries was incorporated in 2013. The company develops, manufactures, and designs Defence Application Products, Kitchen, and Dairy Equipment Products.
Written By Vaibhav Patil
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