Penny stock engaged in the business of manufacturing and trading Iron ore pellets, sponge iron, steel billets, HB wires, and generation of power jumped upto 16 percent in the day’s trade upon signing EPC agreement for solar power plant worth Rs. 115.13 Crores.
Price Action
With a market capitalization of Rs. 176 Crores, the shares of Vaswani Industries Limited were trading at Rs. 58.91 per equity share, up 13 percent from its previous day’s close price of Rs. 52.16.
What Happened
Vaswani Industries Limited has signed and executed an EPC contract with SR Corporate Consultant Private Ltd to provide Engineering, Procurement, and Construction (EPC) for the development of a 36.25 MWp Solar Power plant for a consideration of Rs. 115.13 Crores.
In Addition, Vaswani Industries Limited is also going to expand its Billet Manufacturing Capacity from its existing capacity of 66,000 MT to 1,50,000 MT by April 2025 with an investment of Rs. 60 Crores.
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About the Company
Vaswani Industries Limited is engaged in the business of manufacturing and trading Iron ore pellets, sponge iron, steel billets, HB wires, and generation of power. The Company’s segments include Iron & Steel, Power, Real Estate, and Agri Products. Its products include sponge iron, and forging ingots and billets.
Financials & Ratios
Its revenue from operations declined by 1.93 percent from Rs. 93.55 Crores in Q1FY24 to Rs. 91.74 Crores in Q1FY25, accompanied by profits of Rs. 2.76 Crores to Rs. 2.52 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 7.76 percent and a return on capital employed (ROCE) of 13.3 percent. In terms of liquidity ratios, it has reported a debt-to-equity ratio of 0.27.
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Written by: Bharath K.S
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