The shares of this financial service company gained up to 5 percent after the company sanctioned an amount of Rs 1,964.90 Million for the development of a state-of-the-art manufacturing unit.
Sunshine Capital Ltd has a market capitalization of Rs 242.71 crore, the shares were trading at Rs 2.33 per share, increasing around 4.02 percent as compared to the previous closing price of Rs 2.24 apiece.
Reason for Rise:-
Today the company shares have seen bullish movement after Sunshine Capital Ltd sanctioned an amount of Rs 1,964.90 Million and signed a term sheet with Man Stainless Steel Tubes Limited (MSSTL) for the development of a state-of-the-art manufacturing unit for Non-API Electric Resistance Welded (ERW) Carbon Steel Pipes in Kathua, Jammu & Kashmir.
Furthermore, the entire project cost is projected at Rs. 2807.00 million. The sanctioned facilities comprise a rupee term loan (RTL) of up to Rs. 1,964.90 million and a capex letter of credit (LC) of Rs. 1,450.00 million, which serves as a sublimit to the RTL facility. The project is expected to be finished by April 2025, with a 9-year loan that includes a 12-month construction phase and a 12-month repayment moratorium.
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Financial condition:-
Analyzing the company’s financial condition, revenue magnified by 70 percent from Rs 1.69 crore in Q1FY24 to Rs 2.88 crore in Q1FY25, during the same period net profit also increased significantly by 43 percent from Rs 1.40 crore to Rs 2 crore.
Remarkable Return:-
The company has given a return of 86.99 percent till know this year and a multi-bagger return of 333.96 percent in a year. If an individual investment of Rs. 1 lakh in the company would be worth Rs. 4.33 lakh in a year.
Ratio analysis:-
The company’s critical ratios show that the return on equity decreased from 1.74 percent in FY22-23 to (85.27) percent in FY23-24, while the return on capital employed decreased from 1.89 percent to 0.13 percent. The net profit margin (NPM) for fiscal year 23-24 is (63.61) percent.
Company Profile:-
Sunshine Capital Ltd is primarily involved in investing in long-term investments such as equity shares and equity-related securities. It is engaged in buying, selling, and transfer, of shares and securities of various companies in the capital markets.
Written by:- Abhishek Singh
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