Shares of this micro-cap stock jumped around 3 percent in Wednesday’s trading session after the company secured an order worth Rs 43.90 lakhs from the “Ministry of Electronics and Information Technology”.
With a market capitalization of Rs 658.62 crores, the stocks of SBC Exports Limited started their trading session on Wednesday at Rs 30.79 and currently trade at Rs 31.12, gaining approximately 2.50 percent compared to the previous close of Rs 30.43 apiece.
Such stock price movements were witnessed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated about the receipt of a work order worth Rs 43.90 lakhs from the Ministry of Electronics and Information Technology.
The work order pertains to the provision of office support, project management support, as well as rollout services. The time period decided for executing the abovementioned order is six months.
During the recent financial quarters, the basic business indicators of the company such as operating revenues and after-tax profits showed a dip in numbers. The former moved down from Rs 52.86 crores during Q1FY23-24 to Rs 35.22 crores during Q2FY23-24, and, the latter, keeping the timeframe the same, shifted down from Rs 4.59 crores to Rs 2.17 crores.
In addition, the company’s profitability metrics, viz, the return on equity (RoE) and the return on capital employed (RoCE) rose in numbers with the RoE growing from 13.1 percent during FY21-22 to 22.44 percent during FY22-23, and the RoCE, during the same period, improving from 20.67 percent to 23.84 percent.
The latest shareholding pattern data of the company, as per the September 2023 quarter, exhibits the Promoters holding a 65.69 percent stake, and the Foreign Institutional Investors (FIIs), recently increasing their stake, currently hold a 0.16 percent stake in the company.
Founded in 1991, SBC Exports Limited is an India-based company engaged in the business of manufacturing and selling fabrics as well as garments. The company mainly operates through three broad segments, i.e., trading and manufacturing of garments, manpower supply services; and tour operator services.
Written by Amit Madnani
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