Shares of this micro-cap company jumped more than 15 percent in Thursday’s trading session after the company bagged a Packing Contract Order from Vedanta Limited worth Rs 20.25 crores. Year-to-date, the company’s stock delivered returns of nearly 20 percent to its holders.
With a market capitalization of Rs 316.17 crores, the stocks of Krishca Strapping Solutions Limited opened their trading hour on Thursday at Rs 234 and currently trade at Rs 262, gaining approximately 15.40 percent as compared to the previous close of Rs 227.05 apiece.
Such bullish stock price movements were witnessed today after the company, through a recent regulatory filing with the National Stock Exchange (NSE), intimated that it has signed a Letter of Intent (LOI) for a Packing Contract Order from Vedanta Limited worth ₹20.25 crores.
The LOI consists of lashing, choking, and tarpaulin coverage for ‘FG Trucks’ and ‘Containers’ spanning over a 3-year period. The contract is scheduled to commence on 1st April 2024.
A breakdown of contract values shows nearly Rs 11.54 crores towards Lashing & Chocking Export (Teu’s Basis), Rs 7.72 crores towards Lashing & Chocking Domestic (Tonnage Basis), and the remaining 1 crore towards Tarpaulin Service Requirements.
Having a glance at the latest financial reports available, the company’s operating revenues were reported at Rs 27.62 crores during the December 2023 quarter and the after-tax numbers, during the same period, were reported at Rs 3.44 crores.
The company’s stock was listed on NSE on 5th June 2023 and since then, the stock has delivered multibagger returns of approximately 125 percent to its shareholders, i.e., if someone invested Rs 1 lakh into the company’s stock after listing, it would have converted to Rs 2.25 lakhs.
Incorporated in 2017, Krishca Strapping Solutions Limited is engaged in the business of the manufacture and wholesale of steel seals, strapping steel, and strapping tools within as well as outside India. The company’s product portfolio includes regular-duty packaging straps, winding-type coils, and medium-carbon steel strappings among other products.
Written by Amit Madnani
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