The shares of the smallcap company gained up to 7 percent after the company received a new work order for the procurement of a spare P75 Project worth Rs 9.58 crore.
With a market capitalization of Rs 1,584.02 crore, the shares of CFF Fluid Control Ltd were trading in green at Rs 810.05 per share, increasing around 4.77 percent as compared to the previous closing price of Rs 773.20 apiece.
Matter Explanation:-
According to the company filing, CFF Fluid Control Ltd has received a new work order worth Rs 9.59 crore for the procurement of a spare P75 project, the order received by Material Organisation, Mumbai, and is expected to be delivered by December 2024.
Financial analysis:-
Examining the CFF Fluid Control Ltd’s financial performance, revenue decreased by 20 percent from Rs 59 crore in H1FY23 to Rs 47 crore in H2FY24. During the same period, net profit decreased by 30 percent, from Rs 10 crore to Rs 7 crore.
Orderbook & Collaborations:-
CFF Fluid Control collaborates with international firms like Coyard SAS and Nereides, France, to enhance its capabilities in submarine technology, including new-age fluid control and underwater communication devices, bolstering India’s defense self-reliance.
CFF Fluid Control specializes in innovative fluid control and mechanical equipment for the Indian Navy, with over 90% of its order book from naval projects and a manufacturing facility approved by key defense authorities.
Ratio analysis:-
The company’s critical ratios show that the return on equity decreased from 40.56 percent in FY22-23 to 13.56 percent in FY23-24, while the return on capital employed decreased from 31.66 percent to 19.93 percent. The net profit margin (NPM) for fiscal year 23-24 is 15.99 percent.
Remarkable Gains:-
The stock has delivered a return of 88.68 percent in the last six months and a multi-bagger return of 352.50 percent in a year. If an individual invested Rs. 1 lakh a year ago in the company would be worth Rs. 4.52 lakh now.
Company profile:-
CFF Fluid Control Ltd manufactures, overhauls, repairs, and maintains shipboard equipment, combat systems, reference systems, and test facilities (pneumatic, hydraulic, electrical, and electronic systems) for submarines and surface ships of the Indian Navy.
Written by:- Abhishek Singh
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