Shares of this small-cap company that operates a 4-star hotel chain, manage health centers, and engaged in mining, education, and health and wellness surged nearly 18 percent on Monday morning after the company reported a 78 percent QoQ increase in net profit, along with strong revenue growth in its latest quarterly results.
Share Price Movement
During Monday’s trading session, Savera Industries Ltd’s share price opened at Rs.164.95 apiece, reaching an intra-day high of Rs.169.70 per share, rising 17.6 percent from the previous close of Rs.144.30 apiece. The shares have retreated since then before closing at Rs.156.00 each.
Rationale for Rise
The strong bullish movement in Savera Industries Ltd’s stock price resulted from substantial revenue and net profit growth in the latest quarter. In its recent filing for the quarter ending September 2024, the company reported a 12 percent increase in revenue, reaching Rs.20.60 crore compared to Rs.18.34 crore in Q2 FY24. Sequentially, revenue also rose by 15 percent from Rs.17.93 crore in Q1 FY25.
During the same period, Savera Industries posted a significant 58 percent increase in net profits to Rs.4.74 crore in Q2 FY25 from Rs.3.01 crore in Q2 FY24 and 78 percent from Rs.2.67 crore in Q1 FY25.
In terms of return ratios, return on capital employed (ROCE) is currently at 16.5 percent, while return on equity (ROE) is at 13.1 percent. The company has a strong current ratio of 1.89 and a low debt-to-equity ratio of 0.05.
Services Offered
Savera Industries operates the Savera Hotel, a four-star property in Mylapore, offering 230 rooms, various dining options, and extensive conference amenities. Over time, the company has expanded its ventures, including health centers under the O2 Health brand, while strengthening its position in the hospitality sector.
Shareholding Pattern
In the September 2024 shareholding pattern for Savera Industries Ltd, promoters hold 62.81 percent, while retail investors account for 37.20 percent. Notably, prominent investor Dolly Khanna holds a 1.23 percent stake in the company.
Company Profile
Savera Industries Limited, established on November 17, 1969, is a significant presence in India’s hospitality industry, particularly recognized for its Chennai operations. Over the years, the company has diversified, branching out into sectors like mining, education, and health and wellness, while continuing to expand its core hospitality business.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
