The shares of the infrastructure developer and operator hit a 52-week high and 5 percent upper circuit to Rs.344.95 per share after securing orders worth more than Rs.20 crore.
Price Movement
In Tuesday’s trading session, the share price of Sathlokhar Synergys E&C Global Limited opened at a 52-week high of Rs.344.95 per share and also hit a 5 percent upper price band from its previous close of Rs.328.55 apiece.
Reason for the rise
The rise in stock price was due to the market’s positive reaction to Sathlokhar Synergys securing a contract from Komatsu India Private Limited. The contract involves building a new warehouse of about 4,200 sq. m.
The work includes civil construction, Pre-Engineered Building (PEB), and Mechanical, Electrical, and Plumbing (MEP) services, with specific requirements such as a 10T/sq. m. floor load and a 10-metre eave height.
The project also includes concrete road works and the construction of a collection tank. Valued at approximately Rs. 20.17 crore (including GST), the project is to be completed by March 2025.
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Future Growth Potential
Securing a contract from a reputable client like Komatsu India will also improve the company’s market positioning, potentially leading to more contracts in the future. Additionally, engaging in this large-scale project will provide valuable experience and improve operational capabilities, which can be leveraged in future bids.
Financials
Turning to the latest financial figures, Sathlokhar Synergys E&C Global Limited reported net sales of Rs.247 crore for the financial year 2024, marking a substantial increase of 184 percent from Rs.87 crore in FY 2023.
Regarding profitability, the company achieved a Profit After Tax (PAT) of Rs.26 crore in FY 2024, reflecting a remarkable growth of 420 percent compared to Rs.5 crore in FY 2023.
Ratio Analysis
Sathlokhar Synergys has demonstrated strong financial performance with notable ratios. The Return on Capital Employed (ROCE) stands at 87.82 percent, while the Return on Equity (ROE) is 64.68 percent. The company’s Price-to-Earnings (P/E) ratio is 30.31, which is lower than the industry average of 36.87.
Additionally, the company has a solid current ratio of 1.57 and an Earnings Per Share (EPS) of Rs.10.84.
Company Profile
Sathlokhar Synergys E&C Global Ltd is an integrated Engineering, Procurement, and Infra Turnkey Construction (EPC) company, offering services from design and planning to execution and commissioning. It specializes in Mechanical, Electrical, Plumbing (MEP) installations, HVAC, and Utilities
Written by – Siddesh S Raskar
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