Small Cap stock ngaged in the business of manufacturing and processing quartz, granite, and marble jumped 7 percent in the day’s trade upon entering into a license agreement to expand its portfolio and operations.
Price Action
With a market capitalization of Rs. 980 Crores, the shares of Global Surfaces Limited were trading at Rs. 231.06 per equity share, up 3.85 percent from its previous day’s close price of Rs. 222.50.
What Happened
Global Surfaces FZE(Licensee) wholly-owned subsidiary of Global Surfaces Limited, has entered into a Technical License Agreement with SQIP, LLC (Licensor) a Florida-based limited liability company, and Veegoo Technology Co. Ltd. Following this Global Surfaces FZE will produce engineered quartz surfaces that remarkably emulate the look and feel of natural marble looks, featuring more authentic colors and patterns.
Under the terms of the agreement, Global Surfaces FZE will obtain non-transferable, non-sublicensable, exclusive rights and licenses to use the Licensed Patents and Licensed Know-How to develop, produce, manufacture, and sell the Licensed Products within the defined Field of use exclusively in the Manufacturing Territory i.e. Middle East and North Africa Region and a first right of refusal in India.
The Licensee shall also get technical assistance and necessary equipment, it shall retain the ownership of licensed equipment and specific rights over the patents. It also emphasizes maintaining a minimum selling price and adhering to specific operational and territorial conditions.
About the Company
Global Surfaces Limited is engaged in the business of manufacturing and processing quartz, granite, and marble. Its products are used in flooring, bathroom vanity tops, indoor wall cladding, laboratory counters, reception desks, tabletops, coffee tables, windowsills, staircases, kitchen countertops, and bar counters.
Financials and Ratios
Its revenue from operations grew by 26.52 percent from Rs178 Crores in FY23 to Rs. 225 Crores in FY24, accompanied by profits of Rs. 24 Crores to Rs. 20 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 6.32 percent, and a return on capital employed (ROCE) of 6.58 percent. It has reported a debt-to-equity ratio of 0.44.
Written by: Bharath K.S
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