The shares of this microcap company locked a 20 percent upper circuit in Thursday’s trading session after reporting an increase in net profits by 55 percent YoY. In one year, the stock has delivered more than 150 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 343 crores, the shares of KPT Industries Ltd started Thursday’s trading session on a higher note at Rs. 890.25 compared to its previous close of Rs. 840.25.
During the trading session, the shares clocked a 20 percent upper circuit at Rs. 1,008.30 apiece and also recorded as the company’s fresh 52-week high.
What Happened:
Such a bullish movement in the share price was observed after the company announced their Q1FY25 results. Quarterly, the revenue increased by 17 percent from Rs. 39.19 crores during the Mach quarter to Rs. 45.79 crores in the June quarter. In addition, the net profits surged by 12.3 percent from Rs. 3.64 crores to Rs. 4.09 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue zoomed by 21 percent from Rs. 37.78 crores during Q1FY24 to Rs. 45.79 crores in Q1FY25. On the other hand, the net profits magnified by 55 percent from Rs. 2.64 crores to Rs. 4.09 crores during the same timeframe.
The company generates revenue from multiple segments, with 64 percent, coming from Power Tools, approximately 19 percent from Blowers, and the remaining 17 percent from E-Vehicles.
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E-Vehicles segment:
KPT Industries has made significant strides in the electric vehicle (EV) segment, particularly focusing on the manufacturing of e-vehicles, specifically three-wheelers and e-carts.
KPT Industries’ primary product in the EV segment is the Pushpak E-Cart, which is designed for various applications, including waste management.
The Pushpak E-Cart is available in 11 different models, catering to different operational needs. These models include options like the Basic Unit, Driver Cabin, and Cargo Cover, among others.
During the quarter the Ev segment revenue grew by 324 percent from Rs. 1.78 crores during Q4FY24 to Rs. 7.56 crores in Q1FY25.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 28.89 percent and a return on capital employed (RoCE) of 23.56 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 4.34 percent.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters maintain ownership of 48.22 percent, while Domestic Institutional Investors possess 0.01 percent of the stake. The remaining 51.77 percent of shares are held by Retail Investors.
Company Profile:
Incorporated in 1976, KPT Industries Ltd is in the business of power tools, blowers and e-vehicles. The company produces a wide range of tools including drills, grinders, and welding equipment, serving industries such as construction, metalworking, and automotive.
Written By Vaibhav Patil
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