Shares of this microcap company clocked 5 percent upper circuit after receiving contact from Maharashtra Government. In just five trading sessions, the shares have delivered a multibagger return of 165 percent to its investors.
With a market capitalisation of Rs. 110 crores, the shares of Ishan International Ltd started Tuesday’s trading session on a higher note at Rs. 5.10 compared to its previous close of Rs. 4.90. Within a few minutes of the opening bell, the shares clocked 5 percent upper circuit at Rs. 5.10.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had entered into a subcontract for the supply, installation and maintenance of solar-powered agricultural pumps to farmers in Maharashtra under the government of India’s Kusum Yojana.
The principals for this project have signed a contract by the company with the Maharashtra government for 5,000 sets worth approximately 150 crores.
Furthermore, initially, the company has received a part of it and revolved 3 times in a financial year this would mean the contribution of an additional 18 crore in turnover. According to the company, this initiative will revolutionize the agricultural landscape by harnessing solar power, marking a monumental stride towards environmental sustainability and energy independence.
Moreover, the company mentioned that on similar lines, they are also trying to get similar projects in other states as well, which can result in exponential growth for the company in the immediate future leading to nearly doubling of the present revenue.
Coming onto the company’s financial statements, the revenue declined by 60 percent from Rs. 22.34 crores in the June quarter to Rs. 9.01 crores during the September quarter. In addition, the net profits decreased from Rs. 95 lakhs to Rs. 2 lakhs during the same timeframe.
Looking at the important financial ratios, the return on equity stood at 3.33 percent during FY22-23 and during the same time frame, the return on capital employed was recorded at 6 percent. In addition, Ishan International stands with zero debt, which means that they haven’t relied much on debt to fulfil the operations.
As per the company’s filing, they are focusing on renewable energy, particularly solar and hydro projects, in its traditional markets like Vietnam, the Philippines, and Indonesia, coupled with expansions into America and East Africa, which may result in sales revenue of over Rs. 700 million for the financial year 2024-25, representing nearly 100 per cent growth.
Headquartered in Gujarat, Ishan International was incorporated in 1995. The company is engaged in contracting and building projects that focus on supplying machines, installation, commissioning, and operational training for sugar plants, jaggery plants, pharmaceutical plants, hydropower plants, and pollution control systems.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
