Recently, two penny stocks have gained attention after securing substantial orders from Reliance Industries Ltd. These developments reflect their growing capabilities and potential in the competitive market, especially given Reliance’s stature as a leading conglomerate in India.
Listed below are the two penny stocks that recently received orders from Reliance Industries Ltd:
IFL Enterprises Ltd
With a market capitalization of Rs. 104 crores, the shares of debt-free penny stock started Wednesday’s trading session on a higher note at Rs. 1.40, locking a 5 percent upper circuit compared to its previous close of Rs. 1.34 apiece.
Recently, the company’s subsidiary Yamunashtakam Tradeventures Private Limited secured a substantial order from Reliance Industries Limited worth over Rs. 600 million (Rs. 60 crores) for the provision of construction supplies required at Reliance Industries Limited’s Jamnagar Plant.
Furthermore, the company anticipates receiving additional orders from Reliance Industries Limited in the forthcoming quarter, which is expected to bolster its revenue and strengthen its market position.
Looking at the company’s financial performance, the revenue magnified by 669 percent from Rs. 1.99 crores during the March quarter to Rs. 15.30 crores in the June quarter. On the other hand, the net profits showcased a transition from a net loss of Rs. 68 lakhs to a net profit of Rs. 3 lakhs during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 3.29 percent and a return on capital employed (RoCE) of 4.95 percent for the period spanning FY23-24. Additionally, the company has successfully eliminated all outstanding debts, ensuring a solid financial standing and bolstered stability.
IFL Enterprises Ltd is a diversified company primarily engaged in the acquisition and trading of financial instruments such as shares, stocks, and bonds.
Additionally, the company is involved in the trading of paper and stationery products, offering a wide range of items including various types of writing paper, coated paper, and notebooks.
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Ishan International Ltd
With a market capitalization of Rs. 65.95 crores, the shares of the engineering company started Wednesday’s trading session on a higher note at Rs. 3.05, locking an upper circuit compared to its previous close of Rs. 2.95 apiece.
On 19th August, the company received a significant order from Reliance Industries Limited for the supply of construction materials for the supply of construction material amounting to Rs. 600 million and intended to be completed within the current financial year.
Coming onto the company’s financial statements, the revenue zoomed by 134 percent from Rs. 9.01 crores in H1FY24 to Rs. 21.12 crores in H2FY24. In addition, the net profits magnified by 2,700 percent from Rs. 2 lakhs to Rs. 56 lakhs during the same timeframe.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 2.17 percent and a return on capital employed (RoCE) of 5.22 percent for the period spanning FY22-23. Additionally, the company has a low debt-to-equity ratio of 0.20 percent which means it has not relied much on debt to fund its operation.
Incorporated in 1995, Ishan International Limited is engaged in contracting and building projects that focus on supplying machines, erection/installation, commissioning, and operational training for sugar plants, jaggery plants, pharmaceutical plants, hydropower plants, and pollution control systems.
Written By Vaibhav Patil
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