The shares of the Micro-cap company is a renowned manufacturer specializing in high-quality steel cord conveyor belts, jumped upto 5 percent upon receiving a work order from NLC India and Maharashtra State Power Generation worth Rs. 48.64 Crores.
Price action
With a market capitalization of Rs. 231.29 crores on Wednesday, the shares of Somi Conveyor Beltings Limited jumped upto 5.1 percent, making a high of Rs. 203.90 per share compared to its previous closing price of Rs. 194.00 per share.
What Happened
Somi Conveyor Beltings Limited, engaged in manufacturing high-quality steel cord conveyor belts, has received a work order from NLC India, a Navaratna Government of India and Maharashtra State Power Generation.
The order is for the supply of steel cord conveyor belts, which is valued at Rs. 4,780.51 lakh. The order also includes 24,300 meters of high-specification belts (2000mm wide, ST-3150 grade, DIN-X standard) intended for bulk material handling applications.
The order is to be delivered in stages within 220 days, and includes provisions for third-party inspection at Somi’s Jodhpur facility. This order underscores Somi’s strong manufacturing capabilities and its reputation for delivering reliable, heavy-duty conveyor solutions to major industrial clients.
Along with this, the company also received an order worth Rs. 84.03 lakh from Maharashtra State Power Generation Co. Ltd. for the supply of steel cord conveyor belts, bringing the total order value secured by the company in March to Rs. 48.68 crore.
About the company
Somi Conveyor Beltings Ltd is a renowned manufacturer specializing in high-quality steel cord conveyor belts. Established in 2000, the company operates two state-of-the-art manufacturing plants in Jodhpur, Rajasthan, equipped with fully automated, PLC-based machinery. With an annual production capacity of 900,000 meters, Somi Conveyor Beltings offers a diverse range of conveyor belts under the brand name ‘Somiflex’.
Product Profile and Offering
Somi Conveyor Beltings Ltd’s product portfolio includes general-purpose, heat-resistant, fire-resistant, oil-resistant, and steel cord conveyor belts. Additionally, they offer specialized belts such as bulletproof (Aramid fabric), chevron, rough top, and pipe conveyor belts, catering to industries like cement, sponge iron, power, and mining sectors.
Key Insights
The company seems to be financially strong with a low debt-to-equity ratio of 0.19, indicating less reliance on debt. A PEG ratio of 0.90 suggests the stock may be undervalued. It has also shown solid performance, with an average 3-year revenue growth of 21.28 percent and net profit growth of 38.44 percent.
Financials
The company’s revenue rose by 47.29 percent from Rs. 18.84 crore to Rs. 27.75 crore in Q3FY24-25. Meanwhile, the Net profit rose from Rs. 0.76 crore to Rs. 1.48 crore during the same period.
Written by Sridhar J
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