Shares of this multibagger stock associated with the ‘Aerospace & Defence’ sector jumped approximately 2 percent in Thursday’s trading session after the company successfully bagged an order worth Rs 3.47 crores from the Naval Dockyard.
With a market capitalization of Rs 864.26 crores, the stocks of CFF Fluid Control Limited opened their trading hour on Thursday at Rs 450 and currently trade at Rs 443.80, gaining around 2 percent as compared to the previous closing price of Rs 436.95 apiece.
Such bullish share price movements were observed today after the company, via a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated about the receipt of a domestic order worth Rs 3.47 crores from “Naval Dockyard Lion Gate Shahid Bhagat Singh Road”, Mumbai.
The abovementioned order pertains to a Recruiting Retention College (RRC) for the hiring of services/expertise for DI/DR of the ‘MCA 62.5 System’ installed onboard in Submarines. The same is decided to be delivered by March 2027.
The RRC is a training institution playing a crucial role in the recruitment as well as retention of personnel for the Indian Navy. The college is responsible for providing courses and training to individuals who are involved in recruiting and retaining sailors within the Indian Navy.
According to the recent half-yearly financials, the company reported a stellar performance as far as the basic business indicators, viz, its operating revenues and after-tax profits are concerned.
The former rose from Rs 32 crores during the March 2023 quarter to Rs 59 crores during the September 2023 quarter, and the latter, during the same period, more than doubled from Rs 4 crores to Rs 10 crores.
The latest investor presentation of the defence company portrays an order book of Rs 113 crores as of 30th September 2023. Out of the same, 50.50 percent of the orders are attributable to the ‘Mechanical Equipment’ segment and the remaining to the ‘Electrical Equipment’ segment.
Keeping a purview of the last one year, the company’s stock delivered multibagger returns of approximately 146 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.46 lakhs.
Founded in 2012, CFF Fluid Control Limited is primarily involved in the business of manufacturing as well as servicing critical component systems, shipboard machinery, and test facilities for submarines & surface ships for the Indian Navy. The company also designs, manufactures, and services mechanical systems and equipment for industries like clean & nuclear energy.
Written by Amit Madnani
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