Shares of this microcap company jumped around 1 percent in Friday’s trading session after receiving an order worth Rs. 9.71 crores from the Government. The shares have delivered around 25 percent returns to shareholders in just three months.
With a market capitalization of Rs. 449 crores, the shares of Krishna Defence and Allied Industries Ltd started Friday’s trading session on a lower note at Rs. 356.25 compared to its previous close of Rs. 361.50. During the trading session, the shares hit a high of Rs. 370, gaining around 1 percent and closed the day at Rs. 365 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had bagged an order from the Ministry of Defence for the supply of a Special Steel Product that is used for Naval Applications, worth Rs. 9.71 crores, which are executable over the next 6 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.
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 73.38 percent of stakes and the remaining 26.35 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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