The shares of the micro-irrigation system manufacturer gained up to 4 percent after the company received a new work order from the Office of the Asst. Engineer worth Rs 14.36 crores.
Mahindra EPC Irrigation Ltd has a market capitalization of Rs 399.60 crore, the shares were trading at Rs 143.05 per share, increasing around 0.35 percent as compared to the previous closing price of Rs 142.55 apiece.
Reason for Rise:-
Today the company shares have seen positive movement after Mahindra EPC Irrigation Ltd has been awarded contracts for the Supply of Micro Irrigation Systems for 2880 Ha. Approx. from Office of the Asst. Engineer. The contract is valued at Rs 14.36 crore and it needs to be completed within 12 months.
Financial Performance and Revenue Split:-
Looking forward to the company’s financial performance, revenue decreased by 14 percent from Rs 53.25 crore in Q1FY24 to Rs 45.31 crore in Q1FY25. During the same period, net loss magnified from Rs 0.81 crore to Rs 2.63 crore. The company’s 99% of revenue comes from the sale of products and 1 percent from Installation Services & Sale of scrap.
Recent orders:-
In early 2024, the company was awarded 4 contracts for the supply of Micro Irrigation Systems, by the Office of the Asst. Engineer, Water Users. The contract is for 4 months for Rs. 13.34 crores
Ratio analysis:-
The company’s critical ratios show that the return on equity increased from (7.53) percent in FY22-23 to 1.01 percent in FY23-24, while the return on capital employed increased from (8.25) percent to 43.16 percent. The net profit margin (NPM) for fiscal year 23-24 is 0.81 percent.
Shareholding pattern:-
In the company’s recent shareholding pattern, the Promoters of the company own 54.21 percent while Retail shareholders own a 45.18 percent stake in the company and Foreign Institutional Investors own a 0.60 percent stake.
Company Profile:-
Mahindra EPC Irrigation Limited is an India-based firm that manufactures micro-irrigation systems. Drip and sprinkler systems, agricultural pumps, greenhouses, and landscaping items are among the products offered by the company.
Written by:- Abhishek Singh
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