Shares of this micro-cap stock hit the 5 percent upper circuit after the company announced financial results for H1FY24, i.e., for the half-year ended September 2023. In the past month, the company’s stock has delivered nearly 37 percent returns to its stakeholders.
With a market capitalization of Rs 47 crores, the stocks of Evans Electric Limited had a muted start to Tuesday’s trading session, and, post 1:15 pm, the company’s stock suddenly spiked and hit the 5 percent upper circuit at Rs 172.10. Currently, the stock is locked at the same price.
Such a stock price surge was witnessed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the financial results for the half-year ended September 2023.
On a half-yearly basis, the company reported stellar financial performance with the operating revenues increasing from Rs 4.95 crores during H2FY23 to Rs 9.17 crores during H1FY24. Moreover, the net profits of the company rose drastically from Rs 93.64 lakhs to Rs 3.22 crores representing an increase of around 243 percent.
Comparing H1FY23 v/s H1FY24, the operating revenues and net profits showed opposing movements with the former, on one end, reducing from Rs 14.17 crores to Rs 9.17 crores, and, the latter, on the other end, shifting up from Rs 2.73 crores to Rs 3.22 crores.
In the past few financial years, the company has seen a drastic increase in the basic profitability metrics such as the return on equity (RoE) and return on capital employed (RoCE).
The former increased from 7.31 percent during FY21-22 to 27.56 percent during FY22-23, and, the latter, keeping the timeframe the same, jumped up from 11.51 percent to 35.33 percent.
The latest shareholding data, as per the September 2023 quarter, portrays the company’s Promoters holding a 59.44 percent stake, and the Public (retail) investors holding the remaining 40.56 percent stake in the company.
Founded in 1947, Evans Electric Limited is a company based in India that is engaged in the business of repair and maintenance of motors, transformers, and generators. The company offers mechanical repairs, refurbishments, rewinds, diagnostics, and manufactures replacement components.
Written by Amit Madnani
