Shares of this GI Pipes manufacturing company jumped around 4 percent in Monday’s trading session after securing an order worth Rs. 94.75 crores. The shares have delivered more than 95 percent to its investors in one year.
With a market capitalisation of Rs. 6,927 crores, the shares of Surya Roshni started Tuesday’s trading session on a lower note at Rs. 609 compared to its previous close of Rs. 612.55. During the trading session, the shares hit a high of Rs. 640.95, gaining around 4 percent and are currently trading at Rs. 634 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had obtained orders in aggregate amounted to Rs. 214.46 crore during this week including an order of Rs. 94.75 crore (with GST) received today for supply of MS Coated pipes (Spiral welded) from domestic undertakings to be executed within a specified time.
Furthermore, yesterday the company received an order worth Rs. 119.71 crores from a domestic entity to supply MS Coated Pipes (Spirally Welded) and the orders are to be executed within 12 weeks.
Coming onto the company’s financial statement, the revenue increased marginally by 1.15 percent from Rs. 1,916 crores in the September quarter to Rs. 1,938 crores during the December quarter. In addition, the net profits zoomed by 18 percent from Rs. 76 crores to Rs. 90 crores during the same period.
Furthermore, the company has an order book of around Rs. 850 crores in hand for API, Exports and Actual Users, which provides good revenue visibility over the short to medium term. On the other hand, the company has an order book value of Rs. 600 crore for the Oil and Gas sector.
Moreover, the company aim to achieve a 50 percent contribution from value-added products and expects improved margins in the lighting division and plans to invest Rs. 200 crores in CAPEX for FY24 and Rs. 100 crores for FY25.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 14.06 percent during FY 21-22 to 19.67 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 15.51 percent to 22.26 percent during the same timeframe. Furthermore, the net profit margin increased from 2.65 percent during FY21-22 to 4.20 percent during FY22-23.
According to the BSE data, Ace Investor Mr Mukul Agrwal, entering the stock in September 2022, currently holds 15 lakh equity shares equivalent to a 1.38 percent stake in this company. The current holding value of his investment amounts to Rs. 119.9 crores.
Headquartered in Delhi, Surya Roshni Limited incorporated in 1973 has emerged as India’s largest ERW Pipes exporter, largest GI Pipes producer, and the second largest in the lighting segment. Its focus is on developing the value-added product mix.
Written By Vaibhav Patil
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