This Microcap Stock hit its 2% Upper Circuit on Tuesday within the first hour of markets opening after reporting a 457% increase in exports volume. The company has a market cap of Rs. 48 crore and is at its 52 week high, trading at Rs. 159.15 versus Rs. 156.05 at closing on Friday.
The stock saw volumes that are 0.2x the monthly average, trading 15% and 96% respectively above its 20 day and 200 day moving averages.
Southern Magnesium and Chemicals Ltd (“SMCL”) stated in a filing dated 30th September 2023 that it has received an order for supply of Magnesium Powder for an estimated contract value of Rs. 70.80 Lakhs which is to be delivered by Nov/ Dec’ 2023.
Earlier this quarter, in mid August 2023 the company received an order for supply of Magnesium Powder for an estimated contract value of Rs. 28.80 crores which is to be delivered within next 12-15 months.
In FY23 the company reported robust financials. Revenue during the year grew 274% YoY from Rs. 2.3 crore to Rs. 8.6 crore. Net Profits grew 775% YoY from Rs. 0.4 crore to Rs. 3.5 crore. This indicates Net Margin expansion of 2400 bps.
In Q1 FY24, the company didn’t do as well on the financial front. Revenue during the quarter de-grew 52% YoY from Rs. 2.9 crore to Rs. 1.4 crore. Net Profits grew 62% YoY from Rs. 1.3 crore to Rs. 0.5 crore. This indicates a margin contraction of 1100 bps.
SMCL was established in 1985 as part of a joint venture with the Andhra Pradesh Industrial Development Corporation, the company established a project in Gowripatnam, Andhra Pradesh, to produce magnesium metal. They produce magnesium extrusion, magnesium alloy, magnesium powder, and magnesium granules.
The company’s shareholding comprises 53% promoter holding which has been stable over the past 4 quarters, 11% held by DIIs and remaining being held by the public.
Written by Sandeep R
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