The shares of this microcap company locked a 10 percent upper circuit in Thursday’s trading session after receiving multiple orders worth Rs. 12 crores.
Price Movement:
With a market capitalization of Rs. 246 crores, the shares of Naman In-Store (India) Ltd started Thursday’s trading session on a higher note at Rs. 215 compared to its previous close of Rs. 212.45. During the trading session, the shares locked a 10 percent upper circuit at Rs. 233.65 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received two substantial new orders from esteemed and renowned brands, each valued at approximately 6 crores for manufacturing of Retail Shop Fixtures.
These orders enhance the company’s strong and healthy unexecuted order book, which now totals around 25 crores.
Additionally, the company also stated that it had acquired the state-of-the-art Salvagnini P2 Panel Bender, a fully automated machine known for its precision and consistency in sheet metal folding.
Earlier, the company signed a Memorandum of Understanding (MoU) for the acquisition of new land near its existing plant. The new site is expected to be operational within 1.5 to 2 years.
In the meantime, the company is actively pursuing cost rationalization at its current plant, which is operating near full capacity, to enhance margins.
Financials:
Looking at the company’s financial performance, the revenue decreased by around 16 percent from Rs. 79 crores during H1FY24 to Rs. 66 crores in H2FY24. On the other hand, the net profits declined by 33 percent from Rs. 6 crores to Rs. 4 crores during the same period.
Product Portfolio:
The company specializes in producing customized furniture and fixtures in wood, metal, and plastic for various applications, including kiosks, complete stores, Countertop Units (CTU), Countertop Display Units (CDU), and Point of Sale Merchandising (POSM). Operating within a B2B (business-to-business) model, the company caters to other businesses.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 24.23 percent and a return on capital employed (RoCE) of 35 percent for the period spanning FY23-24. Further, during the same period, the net profit margin stood at 6.40 percent.
Compnay Profile:
Established in 2010, Naman In-Store (India) Limited is a retail furniture and fittings company providing retail solutions to various industries and retail outlets.
Written By Vaibhav Patil
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