Shares of this smallcap company jumped in Wednesday’s trading session after receiving an order worth Rs. 10.46 crores for the procurement of the spare P75 Project. In just one month, the stock has delivered a multibagger return of 106 percent to its shareholders.
Price Movemnet:
With a market capitalization of Rs. 1,818 crores, the shares of CFF Fluid Control Ltd started Wednesday’s trading session on a higher note at Rs. 930 compared to its previous close of Rs. 909.50. During the trading session, the shares hit a high of Rs. 949, gaining around 3 percent and are currently trading at Rs. 923 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had received the contract for the procurement of spare P75 Project from Material Organisation, Mumbai totalling approx. Rs. 10.46 crores and to be delivered by January 2025.
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.
Customer Base:
The company manufactures critical component systems and test facilities for submarines and surface ships for the Indian Navy.
Furthermore, 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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