A low-priced stock drew investor attention after securing fresh orders worth Rs.10.04 crore from Indian Railways. The development is seen as a positive trigger, potentially boosting the company’s revenue visibility and supporting future growth.
Price Movement
During Thursday’s trading session, shares of Abha Power and Steel Limited opened at Rs.31.50 apiece, similar to its previous closing price. However, the stock retreated later and closed at Rs.31.15 apiece.
What Happened
Abha Power and Steel Limited has announced that it has secured a fresh order worth Rs.5.75 crores directly from Indian Railways. In addition to this, the company has also received orders valued at Rs.4.29 crores from reputed private Original Equipment Manufacturers (OEMs), who will ultimately supply the products to Indian Railways. These recent developments reinforce the company’s growing presence in the railway sector.
As of April 16, 2025, Abha Power and Steel’s total order book stands at approximately Rs.25.75 crores, reflecting the company’s steady progress in strengthening its market position and expanding its footprint in the infrastructure space. This consistent order inflow highlights the trust its clients place in its manufacturing capabilities and its commitment to contributing to India’s rail network development.
Business Overview
Abha Power and Steel Limited (APSL) serves a wide range of industries, including Indian Railways, steel, cement, heavy engineering, mining, and power, by offering a comprehensive portfolio of both standard and customized products. The company places strong emphasis on quality, safety, value, and price competitiveness factors that have enabled it to build and sustain long-term customer relationships.
International Exposure
In addition to its domestic presence, APSL has expanded its global footprint, supplying products to over six countries, including the UAE, Qatar, Germany, Canada, Italy, Netherlands, and Nepal, showcasing its growing reputation as a reliable industrial partner.
Manufacturing Capabilites
Abha Power and Steel Limited operates two foundries for SG iron and steel within its 319,200 square-foot facility in Silpahri Industrial Area, Bilaspur. The plant includes a 3 MW captive solar unit that cuts operating costs and saves around 3,400 metric tonnes of CO2 annually. The company aims to become a green manufacturer of castings.
Financial Performance
According to its recent financial updates, Abha Power and Steel Ltd reported consolidated revenue of Rs.51.75 crores in FY24, marking a 5 percent decrease from Rs.54.70 crores in FY23. However, the company saw a surge in net profit to Rs.3.78 crores, rising 170 percent from Rs.1.40 crores in the same period last year.
Important Accounting Ratios
The company has a Return on Capital Employed (ROCE) of 17.44 percent and a Return on Equity (ROE) of 21.57 percent. Its Price-to-Earnings (P/E) ratio stands at 15.52, lower than the industry average of 21.1. Furthermore, the company maintains a current ratio of 6.81, and a debt-to-equity ratio of 1.35.
Written by – Siddesh S Raskar
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