This microcap defence stock specializing in submarine and surface ship manufacturing and services jumped 1.77% in day trade hours upon receiving an order from the Indian Navy.
With a market capitalization of Rs. 957 Crores, the shares of CFF Fluid Control Limited were trading at Rs. 491.45, up 1.77% from its previous day’s close price of Rs. 482.95. The stock has outperformed the Nifty and risen 167% in the past year.
The company is in the microcap category, and its financials are released semi-annually. Its revenue from operations increased by 51.06% YoY, from Rs. 47 crores in FY22 to Rs. 71 crores in FY23. Its net profit increased by 25% YoY, from Rs. 8 crores in FY22 to Rs. 10 crores in FY23.
The company received a purchase order from the Indian Navy for the procurement of a spare P75 project worth Rs. 4.81 crore, which is due by August 2024. The company’s order book in FY23 stood at Rs. 90.04 crore.
CFF Fluid Control Limited is engaged in manufacturing, overhauling, repairing, and maintaining shipboard machinery, combat systems, reference systems, and test facilities for submarines and surface ships for the Indian Navy.
The company not only designs but also manufactures and provides services for mechanical equipment and systems for various industries such as nuclear and clean energy.
Its facilities are located in Khopoli, where it produces and provides services for fluid control systems, distributor and air panels, weapons and control systems, steering gear, propulsion systems, high-pressure air systems, hydraulic systems, and breathing and diving air systems. These systems are integrated into submarines and surface ships for the Indian Navy and OEMs.
According to the company’s segment in FY23, revenue from product sales accounted for 96.58%, up 59.47% YoY, and 3.42% from service sales, down 42.41% YoY. In FY23, the company’s ROE was 40.56%, while its RoCE was 31.66%.
Written by: Santhosh S
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