The share price of this leading engineering products and castings equipment manufacturer hit a 10 percent upper circuit, reaching a 52-week high of ₹96.74 per share. This upswing occurred following the company board’s announcement to consider a proposal for fundraising.
Simplex Castings Ltd. belongs to the micro-cap category with a market capitalization of ₹59.31 crore.
On February 28, 2024, the company board to consider the proposal for raising of funds by way of equity shares or other securities through a rights issue, qualified institution placement, preferential issue or any other method as may be permitted under the applicable law, subject to such regulatory/statutory approvals as may be required. The company reported this in its exchange filing.
Simplex Castings shares have gained 60 percent in the last six months and 155 percent in a year. For example, a shareholder investment of ₹1 lakh in the company, would be worth ₹2.55 lakhs in a year.
Simplex Castings Ltd. manufactures SG iron, steel, special alloy castings, C.I. castings, and equipment. The company manufactures iron and steel casting products at its two manufacturing units in Bhilai and Tedsara.
In a year-over-year analysis of financial performance, the company experienced a slight decrease in revenue, falling by 2.3 percent from ₹30.28 crores in Q3 FY23 to ₹29.48 crores in Q3 FY24. Concurrently, the net profit saw a positive turnaround, shifting from a loss of ₹11.26 crores to a profit of ₹0.48 crore during the same period.
As of the December quarter, the company promoter holds a 56.53 percent stake, while retail investors hold a 43.46 percent stake in the company.
Written by Omkar Chitnis
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