The shares of Loyal Equipments Ltd locked at the 5 percent upper circuit, reaching a 52-week high of Rs 127.15 on Thursday. The company has a market capitalization of Rs 129 crores. Such a movement in the stock price was noticed after the company received a new order.
According to the exchange filing, the company obtained a fresh work order from Numaligarh Refinery Limited for the shipment of shell and tube heat exchangers valued at Rs 11.36 crore.
Over a one-year period, the stock has provided multibagger returns of 301.74 percent to its stockholders, with a price from Rs 31.65 to current levels. If the investor invested Rs 1 lakh in the stock, it would have converted to Rs 4.01 lakh within a year.
Loyal Equipments Ltd was established in 1993 and is engaged in exporting and manufacturing pressurised vessels for engineering industries such as chimney pressure vessels, cylindrical pressure vessels, membrane pressure vessels, and custom pressure vessels.
Based on standalone statements Company’s net profit grew by 400% in Q4FY23 to Rs 3 crore from a loss of Rs 1 crore in Q4FY22. Furthermore, revenue from operations climbed by 325% to Rs 17 crore from Rs 4 crore in the previous year’s quarter.
On a YoY comparison of the metrics, the revenues significantly improved from Rs 32 crores during FY 21-22 to Rs 49 crores in FY 22-23. The Net profit is shifted upwards within the timeframe mentioned, from a loss of Rs 5 crores to a profit of Rs 5 crores.
Profitability ratios grew considerably during FY22 and FY23.ROE increased from -30% to 26%, while ROCE increased from -15% to 27%. Likewise, the net profit margin increased from -15% to 12%.
As per the shareholding pattern, promoters of the company hold a 73.53 percent stake, and retail investors hold a 26.48 percent stake in the company for FY 22-23.
The company belongs to the category of penny stocks. We advise individual investors to conduct in-depth research before purchasing high-return penny stocks since their performance is inconsistent, they are illiquid, and only a small number of trades can result in a circuit limit. and therefore involve a significant level of risk for individual investors.
Written by Omkar C
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