The share price of the micro-cap stock rose around 4 percent to its intraday high of Rs 233.95 from its previous close of Rs 225.15 after the company announced it had received a new order worth Rs 6.82 crores.
According to the filling of Loyal equipment, the Company has received a new order worth Rs.6.82 Crores for the supply of volume bottles from Kirloskar Pneumatics Company Limited the order is to be executed within 7 months.
A volume bottle, also known as a surge drum, is a pressure vessel used in reciprocating compressors to reduce pressure pulsations and dampen vibrations. It is typically mounted directly to the compressor cylinder connection. The volume of the bottle acts as a reservoir, absorbing the pulsating flow from the compressor and releasing it at a more uniform rate.
According to the Loyal equipment report, the net revenue increased by 125 percent year over year, from Rs 11.57 crore in Q2FY23 to Rs 26.08 crore in Q2FY24. Their revenue rose by 553 percent sequentially from Rs 41.90 crore in Q1FY24 to the current levels.
In addition, the company’s net profit rose by 103 percent year over year, from Rs 1.84 crores in Q2FY23 to Rs 3.75 crores in Q2FY24. Their profit increased by 280 percent on a quarterly basis from a net loss of 2.08 crore in Q1FY24 to the current levels.
Loyal Equipment is a microcap company with a market capitalization of Rs 632 crores. The company’s promoters hold a 73.5 percent stake in the company and 26.4 percent owned by the general public.
Loyal Equipment’s share price has risen by 387 percent in a year and by 99 percent in six months. For example, if an investor invested Rs 1Lakh a year ago the current value would be 4.87Lakhs.
The return on equity (ROE) of 30 percent, and a return on capital employed (ROCE) of 22 percent, with a lower price-to-earnings ratio of 31 compared to its peer companies and the company has less debt-to-equity ratio of 0.54.
Loyal Equipments Ltd produces industrial and engineering equipment. It designs, manufactures, supplies, and erects/commissions process equipment and other items for the oil/gas, petroleum, chemical, sugar, steel, fertilizers, and power plant industries.
Written by Sriram KV
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