This Microcap stock which specializes in the business of design, manufacturing, and installation services of automated warehouses, metal storage racks, and other storage solutions was up 15 percent intraday trade after the company received multiple orders including from DHL and Metro Retail.
Price Action
With a market capitalization of Rs. 212 Crores, the shares of Storage Technologies & Automation Limited were up by 15.14 percent in the day’s trade touching a day’s high of Rs. 168.45 per share. The stock reiterated from the day’s high and was trading at Rs. 165 per share which is 12.78 percent higher than the previous closing price of Rs. 146.30 apiece. The stock has delivered a return of 5 percent which has underperformed the Nifty Index on the YTD basis.
What Happened
The company has received multiple orders worth Rs. 11 crore towards work orders with the period for execution to be done by March 2025. The order is from Metro Retail worth Rs. 8.78 crores, DHL Supply Chain India has awarded an order worth Rs. 0.32 crore, Dileep Warehousing has awarded an order worth Rs. 0.18 crore, Varuna Warehousing has awarded an order worth Rs. 1.80 crores.
About the Company
Storage Technologies & Automation was established in 2010. They specialize in designing and manufacturing metal storage racks and automated warehouse solutions. They focus on improving operational efficiency for diverse industries by providing custom storage systems.
Their business model focuses on innovation, quality control, and customer-centric solutions, supported by ISO certification. With an infrastructure situated in Bangalore, they manage all aspects of production and logistics while aiming to deliver economically viable solutions that meet unique client needs while maintaining growth and sustainability in warehousing operations.
Financials & Ratios
Its Revenue from operations grew by 29 percent year on year from Rs. 38 Crores in H1FY24 to Rs. 49 Crores in H1FY25, accompanied by a loss of Rs. 1 Crores to a profit of Rs. 2 Crores.
In terms of Return ratios, the company has a return on capital employed (ROCE) of 45.7 percent and the return on equity (RoE) stood at 67.6 percent. The net profit margin stood at 6.51 percent and the debt-to-equity ratio stood at 1.6 as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 70.09 percent in Storage Technologies & Automation, Foreign Institutional Investors (FII) holding around 4.75 percent, Domestic Institutional Investors (DII) holding around 0.51 percent, and public holdings standing at 24.65 percent.
Written by Santhosh S
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