The shares of the micro cap company rose 3% following the announcement of additional investment of Rs.12.80 crores in its subsidiary.
Share price variations:
With a market capitalization of Rs. 409.85 crores, the shares of Shera Energy Limited opened the trading session at Rs. 187.00 up 1.99% to the previous day’s close of Rs. 183.35 and went up to make an intraday high of Rs. 188.90 up 3% from the previous close. At 11:33 am the stock was trading at Rs. 184.85 about 0.82% above previous day’s close.
Reason for Rise:
According to recent exchange filings, Shera Energy Limited has announced its decision to increase its investment in Shera Metal Private Limited, a subsidiary that operates in the non-ferrous metals manufacturing sector. Shera Energy Limited currently owns 73.20% of Shera Metal Private Limited, which equals 72,10,000 equity shares. Following the latest acquisition, Shera Energy’s stake will rise to 82.13%, with the addition of 1,21,35,000 equity shares.
Financial Performance:
For Q1FY25 the company reported a net profit increase of 39% to Rs. 2.06 crores compared to Rs. 1.48 crores in Q1FY24, while revenue from operations marked an increase by 24.96% to Rs. 203.01 crores from Rs. 162.45 crores in comparison to the same period. In FY24 Shera Energy Limited had an ROE of 11.95% and ROCE of 13.15%.
Recent Updates:
At the board meeting held on 24th September, Shera Energy Limited decided to raise funds by issuing equity shares on a preferential basis. In August, the company increased its standalone production capacity from 18,600 MT to 20,600 MT, indicating a focus on scaling its operations. Additionally, Acuité Ratings & Research upgraded the group’s long-term credit rating from BBB to BBB+
In July, Shera Energy Limited secured its first African export order, valued at USD 87,000, for the supply of conductors to Zambia. Additionally, the company was recently included in the approved vendor list of Hitachi Energy USA Inc.
Product Portfolio:
Shera Energy Limited exports to more than 15 countries, offering a diverse range of products including paper-covered wires, enamel and fiber-covered wires, round and rectangular wires, bunched wires, tubes, rods, and strips. These products are primarily used in transformers, motors, and electrical panels. In FY24, Shera Energy Limited generated approximately 94.91% of its revenue from domestic sales and 5.09% from exports. The product-wise revenue breakdown reveals that 60.67% of the revenue comes from aluminium products, 14.89% from copper products, and 22.56% from brass products.
About the company
Shera Energy Limited (Shera, The Company), incorporated in 2009, is in the business of manufacturing winding wires and strips made of non-ferrous metals primarily Copper and Aluminum.
Company runs 2 Manufacturing plants and 2 units through its subsidiaries Rajputana Industries Limited and Shera Metal Private Limited.
Written By: Joseph Pv
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