Pennar Industries, a leading value-added engineering products and solutions company has bagged orders worth ₹ 851 crores across its various business verticals. Following the news, its share price zoomed 8.37% to reach an intraday high of ₹ 79.65 apiece on the National Stock Exchange (NSE).
According to the exchange filing, the company received these orders from bluechip companies like Reliance Industries, Ashok Leyland, Hindalco and Tata Power. In addition to these companies, there were many other well-known companies that have placed orders in verticals like PEB, ICD, railways, tubes, steel and Ascent Buildings, USA. These orders are expected to be executed within the next two quarters.
Pennar Industries is a small-cap company with a market capitalization of ₹ 992 crores. The order that it has received is greater than its free-float market capitalization. Free-float market capitalization is lower than a company’s market capitalization as it considers only those shares that are available for trade. It excludes shares owned by promoters, the government and trusts, as these entities do not sell shares as often.
The company has given multibagger returns of 117% in the past year, as its share price increased from ₹ 36.00 to ₹ 79.65 apiece. Therefore if an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.17 lakhs today!
Written by Simran Bafna
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