The shares of this small-cap stock gained 6.1 percent to Rs 810 on Wednesday after the company announced strong Q2 results and the acquisition of its joint venture & subsidiary.
According to the company ISGEC Heavy Engineering Ltd report, the company’s net revenue decreased 2.6 percent year on year from Rs 1,512.5 crores in Q2FY23 to Rs 1,473.1 crores in Q2FY24. On a quarter-on-quarter basis, their revenue rose 5.3 percent from Rs 1,398.8 crore in Q1FY24 to current levels.
In addition, net profit rose 124.2 percent year on year, from Rs 28.4 crores in Q2FY23 to Rs 63.7 crores in Q2FY24. On a sequential basis, their net profit plunged by 21.3 percent from Rs 52.5 crores in Q1FY24 to current levels.
Furthermore, ISGEC Heavy Engineering Ltd (parent) infusion of Rs. 2.55 crores by acquiring equity shares in Isgec Titan (Joint venture and subsidiary) to meet the fund’s requirement for manufacturing facility expansion.
Isgec Titan manufactures and supplies corrosion-resistant process equipment and reactive alloy equipment to various industries like Chemical, Petrochemical, Oil and Gas, fertilizers, Mining, Power Generation, Pharmaceutical, and Steel Manufacturing.
ISGEC Heavy Engineering Ltd is a small-cap company with a market capitalization of Rs 5,800 crores. It also has a return on equity (ROE) of 9 percent and a return on capital employed (ROCE) of 11 percent.
Also, the stock has a lower price-to-earnings ratio of 22 and higher earnings per share of 35 compared to its peers.
The majority stake in ISGEC Heavy Engineering Ltd is held by promoters at 62.43 percent, followed by foreign institutional investors at 3.48 percent, with the remaining portion belonging to the public and retail investors.
ISGEC Heavy Engineering Ltd’s share price has increased by 59.05 percent in the last six months and 66.15 percent year to date.
ISGEC Heavy Engineering (Indian Sugar and General Engineering Corporation) is a heavy engineering firm based in India. The company specializes in process equipment, EPC projects, industrial boilers, sugar plants, distilleries, mechanical and hydraulic presses, steel and iron castings, air pollution control equipment, and contract manufacturing.
Written by Sriram KV
