The shares of this micro-cap metal stock engaged in manufacturing non-ferrous metal products and its alloy products and winding wires surged over 2 percent on Wednesday after the company reported a remarkable 57 percent YoY increase in revenue and strong net profit growth in its recent half-yearly results.
Share Price Movement
The share price of Shera Energy Ltd opened at a high of Rs.222.70 per share on Wednesday’s morning trade, rising 2.02 percent from its previous close of Rs.218.20 per share. However, the shares have adjusted since then and are now trading at Rs.220.45 each.
What Happened
Such a bullish movement in the stock price was the result of the company’s increase in revenue and net profits in the half year.
According to its recent filing, at the half year ended September 2024, Shera Energy Ltd reported a 57 percent increase in revenue to Rs.601 crore in H1 FY25, compared to Rs.383 crore in H1 FY24. Furthermore, on a half-yearly basis, the company saw an increase of 22 percent in revenue from Rs.491 crore in H2 FY24.
In the same period, the company reported a significant increase in net profit of 57 percent to Rs.9.66 crore in H1 FY25, up from Rs.6.14 crore H1 FY24 and 22 percent from Rs.7.9 crore in H2 FY24.
In terms of return ratios, return on capital employed (ROCE) is currently at 20.1 percent, while return on equity (ROE) is at 10.7 percent. The company has a strong current ratio of 1.29 and a debt-to-equity ratio of 1.37.
Product Portfolio
Shera Energy’s product portfolio spans a variety of offerings, including winding wires in paper-covered, enameled, and fiber-covered options. In metal products, the company provides copper and brass wire rods, tubes, and strips.
Recently, Shera Energy has also ventured into specialty manufacturing with the production of special-grade brass rods designed specifically for the ammunition industry.
Manufacturing Facility
In FY 2023-24, Shera Energy operated with a total manufacturing capacity of 37,730 MT across an expansive 8,00,000 sq. ft. facility. The company maintained a capacity utilization rate of 67 percent, highlighting its effective production management and resource use.
About the company
Shera Energy Limited is a key player in the non-ferrous metals sector, specializing in producing winding wires and strips made from copper, aluminum, and brass.
Written by – Siddesh S Raskar
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