The share price of the microcap stock opened 1.1 percent up to Rs 163 from its previous close of 161.2 after the company announced the completion of its sales in the invested company.
According to the filing of Shera Energy Limited, the company has completed the sale of its investment in Shera Inirapower Private Limited. This transaction has provided the company with approximately Rs. 11.70 crores in new funds, which will be deployed overseas to launch their new subsidiary in Zambia.
Additionally, the company’s top management is going to visit Zambia on 09th December 2023 to incorporate the new company and expedite the legal process. The company believes that Zambia holds great potential for their upcoming projects.
According to the Shera Energy Limited report, the net revenue increased by 13 percent year over year, from Rs 338.71 crore in Q2FY23 to Rs 383.83 crore in Q2FY24. Their revenue rose by 7.3 percent sequentially from Rs 357.67 crore in Q1FY24 to the current levels.
In addition, the company’s net profit increased by 43 percent year over year, from Rs 4.28 crores in Q2FY23 to Rs 6.14 crores in Q2FY24. Their net profit increased by 27 percent on a sequential basis from Rs 4.82 crore in Q1FY24 to the current levels.
The stock price of the company has increased by 63 percent in the last six months and 150 percent in the last year. For instance, if an investor invested Rs 1 Lakh the current value would have increased to 2.5 lakhs.
The company has a return on equity of 11 percent and a return on capital employed of 18 percent with a good current ratio of 1.32.
Shera Energy Limited is a microcap stock with a market capitalization of Rs 371 crores. The promoters own 63.58 percent of the company, the general public owns 36.12 percent, foreign institutional investors own 0.22 percent and domestic institutional investors own 0.08 percent.
Shera Energy Limited, founded in 2009, is a manufacturer of winding wires and strips made of nonferrous metals, primarily copper and aluminium.
Written by Sriram KV
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