Shares of this microcap company jumped upto around 2 percent in Tuesday’s trading session after receiving an order worth Rs. 9.05 crores from a leading FinTech Service Company.
With a market capitalization of Rs. 280 crores, the shares of CWD Ltd started Tuesday’s trading session on a higher note at Rs. 801.50 compared to its previous close of Rs. 810, gaining around 2 percent and are currently trading at Rs. 775 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had received an order worth Rs. 9.05 crores with a potential to grow 3 to 5 fold over the next two years for the supply of Sound Boxes from a leading FinTech Service Company. The order is to be completed within 12 months.
The new order follows the company’s previous announcement of a Rs. 23 crore order for design, development and manufacturing services for the Sound Box product line.
Coming onto the company’s financial statement, the revenue increased by 51 percent from Rs. 15.02 crores during FY21-22 to Rs. 22.72 crores in FY22-23. On a contrasting note, the net profits declined by 31 percent from Rs. 3.10 crores to Rs. 2.15 crores during the same period.
In FY23, the company accounted for 56 percent of revenue from the domestic market and 38 percent of revenue from the international market.
Furthermore, CWD Limited has established a strategic partnership with a prominent smart meter manufacturer. With a track record of over 100 thousand successful installations, the company’s smart meter solution has demonstrated its reliability and efficacy in practical applications.
Due to increasing expenditure, the profitability metrics of the company declined with the return on equity (RoE) decreasing from 26.95 percent during FY 21-22 to 10.77 percent in FY 22-23, and, the return on capital employed (RoCE) showed a downward movement from 30.12 percent to 14.21 percent during the same timeframe. Furthermore, the net profit margin decreased from 19.76 percent during FY 21-22 to 9.51 percent during FY 22-23.
Headquartered in Mumbai, Connected Wireless Devices (CWD) Limited is an information and communication technology-based company that is engaged in the design, development, manufacturing, and selling of integrated solutions with the use of software and electronics. The company’s business segments include smart Connectivity Modules, Connected Products, Electronics Design, Product Design, and Software Design.
Written By Vaibhav Patil
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