Shares of this trading and distribution company clocked a 2 percent upper circuit in Tuesday’s trading session after receiving an order worth Rs.155.85 crores from BMC. The shares have delivered a multibagger return of 304 percent to its shareholders in one year.
With a market capitalization of Rs. 2,548 crores, the shares of Veritas (India) Ltd started Tuesday’s trading session on a higher note at Rs. 950.55, hitting a 2 percent upper circuit compared to its previous close of Rs. 931.95 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that in Consortium with Genesys International Corporation Limited, they had received a Letter of Acceptance from Brihanmumbai Municipal Corporation (BMC) of Rs.155.85 crores for development, implementation, maintenance of 3D City model and change detection using Geospatial Technology for BMC.
Coming onto the company’s financial statement, the revenue zoomed by 41 percent from Rs. 941 crores during the September quarter to Rs. 1,324 crores in the December quarter. In addition, the net profits magnified by 129 percent from Rs. 42 crores to Rs. 96 crores during the same timeframe.
Due to increasing expenditure, the profitability metrics of the company declined with the return on equity (RoE) decreasing from 5.13 percent during FY 21-22 to 4.30 percent in FY 22-23, and, the return on capital employed (RoCE) showed a downward movement from 4.31 percent to 3.70 percent during the same timeframe. Furthermore, the net profit margin decreased from 4.91 percent during FY 21-22 to 4.38 percent during FY 22-23.
Earlier, Swan Energy acquired a 55 percent stake, followed by an additional 26 percent stake from existing public shareholders through a mandatory open offer in Veritas (India) at a total transaction value amounted to Rs 260.35 crores.
Overall, the acquisition by Swan Energy provided opportunities for synergies between the companies, enabling Veritas (India) Ltd. to benefit from Swan Energy’s strategic diversification and expansion plans in the gas and petrochemicals sectors while contributing to Groupe Veritas’ broader industrial development initiatives.
Headquartered in Mumbai, Veritas (India) was incorporated in 2009. The company is focused on Trading and Distribution of Chemicals, Logistics, Development of Software and Power Generation (Wind Energy).
Written By Vaibhav Patil
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