Shares of this steel straps manufacturing company jumped upto 5 percent in Thursday’s trading session after receiving an order worth Rs. 1.81 crores from Shyam Metalics & Energy Ltd.
With a market capitalization of Rs. 275 crores, the shares of Krishca Strapping Solutions Ltd started Thursday’s trading session on a higher note at Rs. 223 compared to its previous close of Rs. 220. During the trading session, the shares hit a high of Rs. 232, gaining around 5 percent and closed the day at Rs. 231 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had obtained a packaging contract from Shyam Metalics & Energy Ltd for TMT strapping worth over Rs. 1.81 crores.
Looking at the company’s financial statements, the revenue zoomed by 289 percent from Rs. 18.61 crores during FY21-22 to Rs. 72.30 in FY22-23. In addition, the net profits magnified 519 percent from Rs. 1.51 crores to Rs. 9.34 crores during the same timeframe.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 79.68 percent during FY 21-22 to 117.19 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 17.09 percent to 67.54 percent during the same timeframe. Furthermore, the net profit margin increased from 8.11 percent during FY21-22 to 12.92 percent during FY22-23
As per the latest shareholding pattern, the Promoters of the company maintain ownership of 62.59 percent of the total shares, indicating a significant controlling interest. The remaining 37.42 percent of shares are held by Retail Investors.
The company is currently engaged in discussions with several Public Sector Undertakings (PSUs) regarding trial orders, with the objective of entering the PSU market by the end of the quarter. Furthermore, they have commenced a new packing contract at SAIL SRU in Ranchi, with plans for additional contracts in the pipeline.
Moreover, the company’s future outlook encompasses several strategic initiatives aimed at fostering growth and enhancing operational efficiency. These include expanding production capabilities, diversifying product offerings, expanding regionally, and securing growth opportunities through packing contracts.
Additionally, the company plans to establish operations in the Middle East and improve operational efficiency through the development of an Enterprise Resource Planning (ERP) system.
Headquartered in Tamilnadu, Krishca Strapping Solutions was incorporated in 2017. The company is a manufacturer and wholesaler of High Tensile Steel Straps, Strapping Seals and Strapping Tools for packaging. It has India’s first Lead-Free and eco-friendly production line for the heat treatment of steel strapping.
Written By Vaibhav Patil
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