Shares of this multibagger stock associated with the ‘auto components’ industry opened its Monday trading session hitting the 10 percent upper circuit. In the past month, the company’s stock has gained nearly 20 percent for its stakeholders.
With a market capitalization of Rs 465.97 crores, the stocks of Frontier Springs Limited, a leader in manufacturing & supplying coil springs to Indian Railways for over 40 years, started their trading session on Monday at Rs 1183.10 hitting the 10 percent upper circuit and are currently locked at the same price.
Such sharp movements in the stock price are observed today after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has secured a milestone order worth ₹52.20 Cr for the supply of 894 sets of ‘Air Springs’.
“We are scheduled to supply quantities on a monthly basis, aiming to complete the order by the end of this calendar year.”, commented Mr. Kapil Bhatia, Managing Director of Frontier Springs.
During the recent financial quarters, the company reported positive movements in its basic business indicators, viz, operating revenues and after-tax profits. The former grew from Rs 25.49 crores during Q1FY23-24 to Rs 32.75 crores during Q2FY23-24, and, the latter, during the same period, rose from Rs 1.86 crores to Rs 2.85 crores.
As per the recent presentations, the company expects to increase its freight to 3,000 MT by 2027 thereby necessitating a fleet of approximately 5 lakh wagons. Moreover, the company has procurement plans for 90,000 wagons over 3 years, i.e., five times the annual average.
Keeping a purview of six months, the company’s stock has delivered multibagger returns of around 178 percent for its shareholders, viz, if someone had invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 2.78 lakhs.
Frontier Springs Limited is engaged in the business of manufacturing hot wound springs and forging items for transportation, industrial, and government applications. The company’s product portfolio includes L.B.springs as well as hot coiled compression springs and forging items for locomotives, wagons, and carriages, among others.
Written by Amit Madnani
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