The shares of this microcap company clocked a 5 percent upper circuit in Thursday’s trading session after signing an MoU for the acquisition of a battery manufacturing company.
Price Movement:
With a market capitalization of Rs. 373 crores, the shares of Dynamic Services & Security Ltd started Thursday’s trading session on a higher note at Rs. 274.10, clocking a 5 percent upper circuit compared to its previous close of Rs. 261.05 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had entered into a Memorandum of Understanding (MOU) with Bharat Battery Mfg. Co. Private Limited.
This agreement signifies a strategic partnership, likely aimed at the acquisition of 100 percent of Bharat Battery’s shares, which specializes in lead-acid battery manufacturing.
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The company aims to acquire 100 percent of Bharat Battery’s shares, which specializes in lead-acid battery manufacturing. This acquisition is particularly relevant due to the increasing demand for batteries in sectors such as railways, defence, and telecommunications.
Financials:
Looking at the company’s financial statements, the revenue increased by 18 percent from Rs. 55 crores in H1FY24 to Rs. 65 crores in H2FY24. On the other hand, the net profits zoomed by 25 percent from Rs. 4 crores to Rs. 5 crores during the same period.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 10.43 percent and a return on capital employed (RoCE) of 15.60 percent for the period spanning FY23-24. Further, the net profit margin stood at 7.65 percent during the same timeframe.
Recent Development:
Earlier, the company secured a contract with Northern Indian Railway worth over Rs. 1.17 crores to supply an average of 16 personnel, working in three shifts daily.
The scope of work includes cooking and serving meals, including tea and coffee, providing daily newspapers and weekly magazines, and handling various linen-related tasks such as washing bed sheets, pillow covers, blankets, curtains, Rajai covers, and mosquito nets.
Additionally, the contract involves packing linens, dry cleaning blankets, supplying summer uniforms twice a year, winter uniforms once a year, and managing expenses for grass and flower plantations.
Shareholding Pattern:
According to the latest shareholding pattern, Promoters hold 63.93 percent of the shares, and Retail Investors hold the remaining 36.07 percent.
Company Profile:
Headquartered in Kolkata, Dynamic Services and Security was incorporated in 2016. The company provides Mechanized Cleaning, Conservancy, Housekeeping, and Catering.
They also provide Security Guarding and Manpower Solutions to government agencies like the Indian Army, Indian Navy, Indian Air Force, Indian Railways and Webel Technology Limited.
Written By Vaibhav Patil
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