The shares of this micro-cap defence stock surged 7% to an intraday high price of ₹535 per share on Monday after it received a work order from the Indian navy.
At 11:30 a.m., on the Bombay stock exchange, CFF Fluid Control Ltd shares were trading at ₹525 a share, up ₹20.85 or 4.17%, with a market capitalization of ₹1,022 crores.
According to the company’s exchange filing, CFF Fluid Control Limited received the Contract from the Naval Ship Repair Yard, Naval Base, Karwar for the supply of RRC for Routines & Repairs of Hull Valves And Doublers onboard P-75 Class Submarines totaling around ₹4.14 crores. The company is to deliver the product by February 2027.
CFF Fluid Control Limited is primarily engaged in the business of manufacturing and servicing shipboard machinery and the company also designs, manufactures, and services Mechanical equipment and systems for industries like Nuclear and Clean Energy.
CFF Fluid Control Ltd shares have gained 49% in the last six months and 183% in a year. For example, a shareholder investment of ₹ 1 lakh in the company, would be worth ₹2.83 lakhs in a year.
The company’s financial reports indicate a year-on-year revenue growth of 51%, rising from ₹47 crore in FY 21-22 to ₹71 crore in FY 22-23. Simultaneously, the net profit has seen a 25% increase, climbing from ₹8 crore to ₹10 crore.
As of September 2023, the company recorded an order backlog totaling ₹113 crores. Within this backlog, 50.5% of the orders originated from the manufacturing of mechanical equipment, while the remaining 49.5% stemmed from electrical equipment manufacturing.
The company designs, manufactures, and services mechanical equipment and systems for industries like Nuclear and Clean Energy. The Company has been in the defence manufacturing space for more than 20 years.
They were involved in several significant defense sector initiatives related to the provision and maintenance of equipment, including projects such as the SSK Class Submarine, Kalveri Class Submarine, and Kilo Class Submarine.
Written by Omkar Chitnis
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