Shares of this microcap company jumped upto 1 percent in Tuesday’s trading session after receiving an order from Vedanta Group worth Rs. 8.48 crores.
With a market capitalization of Rs. 287 crores, the shares of South West Pinnacle Exploration Ltd started Tuesday’s trading session on a higher note at Rs. 107.50, gaining around 1 percent compared to its previous close of Rs. 103.65 and are currently trading at Rs. 103.90 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had received a Letter of Intent from Vedanta FACOR (Ferro Alloy Corporation Ltd.), a subsidiary of Vedanta Ltd.
The company received the order for exploration activities at Kalarangitta Chromite Mines, Jajpur and Katasahi Manganese Mines, Barbil in the state of Odisha. The aggregate value of the contract is 848.87 lakhs (Rs. 8.48 crores) and it is to be completed in 5 months.
Looking at the company’s financial statements, the revenue increased by around 7 percent from Rs. 42.15 crores during the December quarter to Rs. 45 crores in the March quarter. On the other hand, the net profits decreased by 33 percent from Rs. 4.20 crores to Rs. 2.80 crores during the same timeframe.
The company owns 36 state-of-the-art drive Hydrostatic drilling rigs with the capability to drill up to a depth of 2,500 meters in all domains and three 2D/3D Digital Seismic Recording systems with 8,500 channels and 7 Vibrosis to conduct Land Seismic surveys for Coal, Oil & Gas.
As per the latest data, the company has an order book of Rs. 222 crores. Further, the company expects the core exploration service business to continue to grow at 20 to 25 percent per annum over the near to medium term.
Looking at the company’s important financial ratios, the return on equity (RoE) stood at 6.80 percent during FY23-24 and the return on capital employed was recorded at 11.59 percent during the same period. Furthermore, the net profit margin stood at 5.34 percent during FY23-24.
Headquartered in Gurgaon, South West Pinnacle Exploration was incorporated in 2006. The company is in the business of drilling and exploration of coal, minerals and coal-bed methane. The company’s client base includes various organizations and government agencies involved in the exploration and mining sectors.
Written By Vaibhav Patil
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