Shares of this microcap company locked 5 percent upper circuit after announcing the commencement of trial manufacturing and production at the new facility of its subsidiary company. In just six months, the stock has delivered a multi-bagger return of 175 percent to its shareholders.
Price Movement:
With a market capitalization of Rs. 394 crores, the shares of Sunita Tools Ltd started Tuesday’s trading session on a higher note at Rs. 684.90 compared to its previous close of Rs. 668. During the trading session, the shares clocked a 5 percent upper circuit at Rs. 701.40 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced the commencement of trial manufacturing and production at the new facility of its subsidiary company, Sunita Leoquip Aerospace Private Limited, located in Zak, Ahmedabad. The factory spans over 10,000 sq ft and currently houses over 19 advanced machines.
The trial run will test the advanced technology, precision, and efficiency of the installed machines before commencing full-scale production on customer orders. This phase is critical for the company to uphold the highest standards of quality and reliability.
Furthermore, the company stated that this new facility reinforces its position at the forefront of the industry. It enhances the company’s ability to meet the growing needs of customers with improved precision and capabilities across the Mouldbase, Defence, and Aerospace sectors.
Financials:
Looking at the company’s financial statements, the revenue zoomed by 89 percent from Rs. 13.84 crores duirng FY22-23 to Rs. 26.09 crores in FY23-24. In addition, the net profits surged by 43 percent from Rs. 3.38 crores to Rs. 4.85 crores during the same period.
Important Financial Ratios:
In terms of key financial metrics, the company reported a return on equity of 18.92 percent and a return on capital employed of 22.50 percent for the period spanning FY23-24. Additionally, the net profit margin stood at 18.58 percent during the same timeframe.
Customer Base:
Sunita Tools serves a customer base that includes TVS, Hero Mahindra, Larsen & Toubro, Supreme Industries, RICO, LG, Motherson, etc.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters hold 72.98 percent of stakes and the remaining 27.02 percent of shares are with the Retail Investors.
Company Profile:
Incorporated in 1988, Sunita Tools Limited is a leading manufacturer of engineering and mould base products in India, specializing in the production of Ground Plates, Mould Bases, and Precision CNC Machining.
The company serves a wide range of manufacturing industries including automotive, pharmaceutical, electronics, and consumer goods, providing customized solutions and high-quality capital goods that are essential for their production processes.
Written By Vaibhav Patil
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