Shares of this small-cap company primarily engaged in providing medium to heavy duty cranes on rental surged 8 percent after receiving board approval for establishing a wholly-owned subsidiary in Saudi Arabia.
Price Movement
In Monday’s trading session, share price of Sanghvi Movers Ltd reached an intraday high of Rs.414 per share, up 8.3 percent from the previous close of Rs.382.30 per share. Over the past five years, the stock has delivered returns exceeding 1,000 percent.
What happened
Sanghvi Movers Ltd. has secured board approval for establishing a wholly-owned subsidiary in Saudi Arabia, pending government approvals. The subsidiary will have a proposed capital of US$1,00,000, according to the filings.
The company is establishing a subsidiary in Saudi Arabia to tap into the growing demand for crane rental services across key sectors like Oil & Gas, Petrochemicals, Power, and Infrastructure in the region.
By having a local presence the company aims to enhance its market reach, form strategic partnerships, and provide end-to-end lifting solutions with skilled operators, ensuring efficient and safe operations. This expansion aligns with the company’s growth strategy and positions it to benefit from Saudi Arabia’s large-scale infrastructure projects.
Strategic Initiatives
Sanghvi Movers Ltd. has proposed the spin-off of its renewable and logistics businesses into two wholly-owned subsidiaries: Sangreen Future Renewables and Sangreen Logistics, effective October 1, 2024. The aim is to unlock the potential of each segment with dedicated resources and leadership.
Management Guidance
Management expects over 50 percent YoY revenue growth for the new units, with long-term EBITDA margins projected to settle between 12 percent and 15 percent.
Financial Overview
In its latest financial update, the company reported remarkable net sales of Rs.151 crore for Q1 FY25, reflecting a slight 3.4 percent increase from Rs.146 crore in Q1 FY24. However, net profits declined 3 percent to Rs.41 crore in Q1 FY25, compared to Rs.42 crore in Q1 FY24.
About the company
Sanghvi Movers Limited operates in the industrial equipment sector, specifically focusing on the crane rental industry. It is recognized as the largest crane rental company in India and Asia, and the fourth-largest globally, as of June 2024.
The company provides medium to heavy-duty cranes for various infrastructure projects, including those in sectors such as power, steel, cement, petrochemicals, and wind energy.
Written by – Siddesh S Raskar
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