Shares of this smallcap company locked 10 percent upper circuit in Wednesday’s trading session after reporting an increase in net profits by 117 percent YoY. The stock has delivered a multibagger return of 190 percent to its shareholders in one year.
With a market capitalization of Rs. 2,366 crores, the shares of Spectrum Electrical Industries Ltd started Wednesday’s trading session on a higher note at Rs. 1,516.55, locking a 10 percent upper circuit compared to its previous close of Rs. 1,378.70 apiece.
Such a bullish movement in the share price was observed after the company announced half-year and financial year ended 31st March 2024 results. On a half-yearly basis, the revenue increased by 46 percent from Rs. 133.42 crores during H1FY24 to Rs.194.66 crores in H2FY24. In addition, the net profits zoomed by 74 percent from Rs. 7.10 crores to Rs. 12.37 crores during the same period.
Comparing these metrics on a YoY basis, the revenue magnified by 53 percent from Rs. 127.41 crores during H2FY23 to Rs. 194.66 crores in H2FY24. On the other hand, the net profits surged by 117 percent from Rs. 5.70 crores to Rs. 12.37 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 9.14 percent and a return on capital employed (RoCE) of 15.51 percent for the period spanning FY22-23. Furthermore, the net profit margin for FY22-23 was recorded at 3.32 percent.
Earlier, the Board of Directors of the company had approved the proposal for incorporation of a new wholly owned subsidiary company to diversify the business operations of the company in the medical devices manufacturing industry.
Moreover, in December 2023, the company signed a Memorandum of Understanding (MOU) with Time Medical International Venture (India) Private Limited for the development, manufacture and supply of MRI Machine Components.
As per the latest shareholding pattern, the Promoters possess a 72.53 percent stake, while Foreign Institutional Investors (FIIs) hold 2.51 percent, Domestic Institutional Investors (DIIs) have a 0.31 percent stake, and Retail Investors own the remaining 24.64 percent of shares.
Headquartered in Maharashtra, Spectrum Electrical Industries Ltd was incorporated in 2008. The company is engaged in the business of Injection Moulding, manufacturing of Electrical Press Components and Surface treatment of Automobile, Electrical and Stamped parts.
Written By Vaibhav Patil
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