Share price of this micro-cap stock moved up by nearly 20% on BSE and hit a new 52-week high at Rs. 172.05 in Tuesday’s trading session after the company announced signing a 5-year trade agreement with a USA-based entity for a minimum export of Rs. 312 crores (US$37.5 million).
With a market capitalisation of Rs. 588 crores, at 12:26 p.m. the share price of Shish Industries Limited (SIL) were trading in the green at Rs. 164.05, up by 15 percent.
The company has delivered positive returns of 66.4 percent in the last one year and nearly 54 percent of positive returns in the last six months. So far in 2024, it has given positive returns of around 67.2 percent.
According to the recent regulatory filings with the BSE, Shish Industries Limited announced the signing of a significant long-term commercial trade agreement, with the USA-based entity Best Construction Products Inc. (BCP).
Under the terms of the agreement, SIL will supply a variety of agreed products crucial for construction purposes to BCP over 5 years amounting to a minimum of nearly Rs. 312 crores (US$37.5 million).
Both companies have agreed on dynamic pricing based on raw material prices, actual freight charges, quality assurance and more.
The agreement also outlines the minimum commitment purchase by BCP year-on-year and compensation of 3 percent for any shortage in that, given as an advance deposit to SIL.
In terms of financials, the company reported robust financial growth with the revenue from operations increasing by nearly 24.6 percent YoY from Rs. 18.72 crore in Q4 FY22-23 to Rs. 23.33 crore in Q4 FY23-24, accompanied by an increase in the net profit of 31.3 percent YoY, from Rs. 2.33 crore in Q4 FY22-23 to Rs. 3.06 crore in Q3 FY23-24.
Founded in 2021, Shish Industries Limited is primarily engaged in the business of manufacturing, trading and marketing of Polypropylene (PP) Sheets and Rolls.
The company manufactures and exports plastic corrugated sheets, PP boxes, FIBC Bags, PP/PE woven fabric, tarpaulin, and shipping packaging supplies.
Written by Shivani Singh
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