Shares of this micro-cap stock jumped around 4.50 percent in Monday’s trading session after the company received two large orders from private entities pertaining to the supply of Halogen Lamps.
With a market capitalization of Rs 68.59 crores, the stocks of Jagan Lamps Limited opened their trading session on Monday at Rs 94.47 and currently trade at Rs 93.95, gaining approximately 4.50 percent compared to the previous closing levels of Rs 89.98 apiece.
Such bullish stock price movements were observed today after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that the company has finalized two large orders from “Lumileds India Private Limited” and “Osram Lighting Private Limited” for the supply of Halogen Lamps.
With the consideration not decided as of the receipt date, the orders are provided to the company by both private entities for a period of one year.
Lumileds as well as Osram procures Halogen Lamps from Jagan Lamps with the former selling it under the brand name ‘PHILIPS’ and the latter selling it under the brand name ‘‘OSRAM’.
During the recent financial quarters, the company reported an increase in both the prime business indicators such as operating revenues and after-tax profits. The former moved up from Rs 10 crores during Q1FY23-24 to Rs 14 crores during Q2FY23-24, and the latter, keeping the timeframe the same, rose from Rs 51 lakhs to Rs 68 lakhs.
In addition, the company’s profitability ratios, viz, return on equity (RoE) as well as return on capital employed (RoCE), were on the rise with the former moving up marginally from 9.70 percent during FY21-22 to 9.75 percent during FY22-23 and the latter rising from 12.55 percent to 13.45 percent.
Jagan Lamps Limited is engaged in the business of manufacturing automotive bulbs and lights. The company offers automotive halogen and signaling lamps, LED bulbs, spare bulb kits, etc. Its products are used for commercial vehicles, passenger cars, two and three-wheeled vehicles, as well as for off-road applications.
Written by Amit Madnani
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