The shares of this metal product manufacturer hit 2 percent upper circuit after the company declared as the lowest bidder for a Water Treatment Plant Project in Northern India.
With a market capitalization of Rs 869.42 crore, the shares of Tembo Global Industries Ltd were trading at Rs 783 per share, increasing around 2 percent as compared to the previous closing price of Rs 767.65 apiece.
Reason for Rise:-
The shares of the company have seen positive movement after Tembo Global Industries Ltd has been declared the L1 bidder for subcontracting work at one of the largest water treatment plant projects in North India.
Furthermore, this prestigious project, funded by the World Bank, is estimated to be worth ₹1500 crores and will see Tembo Global Industries receiving a substantial portion of the overall project expenditure. Tembo Global Industries’ selection as the L1 bidder is a testament to its technical expertise, capabilities, and commitment to delivering high-quality solutions.
Order Book:-
Tembo Global Industries Limited has a strong order book of Rs. 1,200+ Crores and Its products include fire-fighting, MEP, HVAC, oil and gas, drainage, anti-vibration solutions, fastener solutions, anchoring solutions, and many others.
Recent orders:-
Recently, the company received a new work order from a domestic client for the supply of DI Pipes for a water irrigation project for a consideration of Rs. 52.90 Crores, and it is to be executed within 12 months.
Moreover, this development further strengthens the company’s position in sectors such as oil and gas, chemicals, construction, power, shipbuilding, nuclear power, HVAC, and anti-vibration systems, as well as industrial, commercial, utility, and OEM installations.
Financial performance:-
Looking forward to the company’s financial performance, revenue magnified by 50 percent from Rs 109 crore in Q2FY24 to Rs 164 crore in Q2Y25. During the same period, net profit stretched drastically by 180 percent, from Rs 5 crore to Rs 14 crore.
Ratio analysis:-
The company’s critical ratios show that the return on equity magnified from 14.52 percent in FY22-23 to 21.48 percent in FY23-24, while the return on capital employed increased from 23.01 percent to 31.25 percent. The net profit margin (NPM) for fiscal year 23-24 is 3.20 Percent.
Company profile:-
Tembo Global Industries Limited manufactures and fabricates metal components used in pipe support systems, fasteners, anchors, heating, ventilation, and air conditioning (HVAC), anti-vibration systems, and equipment for industrial, commercial, utility, and OEM applications.
Written by:- Abhishek Singh
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