Shares of this microcap company clocked 10 percent upper circuit after receiving an order from the Ministry of Defence. In one year, the shares have delivered a whopping return of 100 percent to its shareholders.
With a market capitalization of Rs. 61.9 crores, the shares of Ameya Precision Engineers Ltd started Wednesday’s trading session on a higher note at Rs. 82.50, clocking 10 percent upper circuit compared to its previous close of Rs. 75 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received a Purchase Order from the Defence Research and Development Organization (DRDO)-Armament Research & Development Establishment (ARDE), Government of India, Ministry of Defence for the supply of Warhead Empty assy – EN (PCB-RudraM-III) worth Rs. 67.26 lakhs.
Looking at the company’s financial statements, the revenue zoomed by 26 percent from Rs. 15.06 crores duirng H1FY24 to Rs. 18.98 crores in H2FY24. In addition, the net profits magnified by 64 percent from Rs. 1.12 crores to Rs. 1.84 crores duirng the same timeframe.
The company has a manufacturing facility situated at Bhor and has a current shop built-up area of 27,000 sq. ft and 35 percent of the current shop floor area is reserved for any future capacity addition. Its customer base is spread across the USA, United Kingdom, Germany, Singapore, Slovenija, Austria, and Brazil.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 9.54 percent during FY 22-23 to 12.88 percent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 12.51 percent to 18.35 percent during the same timeframe. Furthermore, the net profit margin increased from 6.47 percent during FY22-23 to 8.70 percent during FY23-24.
According to the latest shareholding pattern, the Promoters retain ownership of 72.69 percent of the company’s shares, while the remaining 27.31 percent is held by Retail Investors or the Public.
Headquartered in Maharashtra, Ameya Precision Engineers is engaged in manufacturing high-end precision components (shafts, and other trim components) for the general engineering industry, focussing on valve and pump manufacturing.
Written By Vaibhav Patil
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