A micro-cap company saw its stock rise by 5 percent after announcing that it has secured a significant order worth approximately Rs.5 crores for the supply of moulded parts used in childcare products. The deal, awarded by Master Nidavellir Aeromed Private Limited, marks a notable win and adds momentum to the company’s growth in the specialized manufacturing segment.
Price Movement
During Thursday’s trading session, Master Components Ltd reached an intra-day high of Rs.329.00 per share, rising 4.5 percent from its previous close of Rs.315.00 each. Since its listing, over the past two years, the stock delivered over 130 percent returns.
What Happened
Master Components has received a purchase order from Master Nidavellir Aeromed Private Limited, an Indian company, for the supply of moulded parts used in childcare products. The order is valued at approximately Rs.1,26,57,200 for one quarter and Rs.5,00,00,000 for the entire financial year, both amounts excluding taxes.
The nature of the contract involves the domestic supply of moulded parts, with a stipulated execution timeline of four months from the date of the purchase order. As per the agreed terms, the payment will be made on a credit basis, with a payment window of 45 days from the date the goods are received.
This significant order further strengthens Master Components’ presence in the childcare products segment and reflects the company’s capability to deliver large-scale manufacturing solutions within strict timelines.
Manufacturing Specialization
Master Components specializes in the production of a wide array of plastic components, leveraging advanced molding technologies. The company’s machinery fleet ranges from 60 to 450 tons, allowing it to manufacture parts varying in size, from as light as 1 gram to as heavy as 3,000 grams.
Product Range
The company caters to multiple industries, including electrical, automotive, industrial, medical, and home appliances. Its diverse product portfolio features items such as trigger sprayers, face shields, molded case circuit breaker casings, and a variety of customized plastic molded components.
Earnings Report
According to its latest financial update, Master Components Ltd reported consolidated revenue of Rs.17.73 crores in H1 FY25, reflecting a 54.31 percent increase from Rs.11.49 crores in H1 FY24. Additionally, the company’s net profit surged by 67 percent to Rs.1.67 crores, compared to Rs.1.00 crores during the same period last year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 17.13 percent and a Return on Equity (ROE) of 13.57 percent. Its Price-to-Earnings (P/E) ratio stands at 47.09, higher than the industry average of 40.24. Furthermore, the company maintains a current ratio of 1.86, a debt-to-equity ratio of 0.06, and an Earnings Per Share (EPS) of Rs.6.69.
Written by – Siddesh S Raskar
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