The shares of this smallcap company locked a 5 percent upper circuit after receiving an order to develop an lSO MW(AC) Grid-Interactive Ground-Mounted Solar PV Power Generation Plant worth Rs. 675 crores.
Price Movement:
With a market capitalization of Rs. 4,834 crores, the shares of Marsons Ltd started Friday’s trading session on a higher note at Rs. 280.90, clocking a 5 percent upper circuit, also recorded as the company’s fresh 52-week high compared to its previous close of Rs. 267.55 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received a Letter of Intent from NACOF OORJA to develop an lSO MW(AC) Grid-Interactive Ground-Mounted Solar PV Power Generation Plant.
This project includes multiple units across different locations in Rajasthan. is being executed for RRECL under the KUSUM Scheme, aimed at providing daytime power to agricultural consumers.
This project will be executed in technical collaboration with a third party “Aditya Clean Systems (P) Ltd” where the third party will offer the company technical support. Further, the total project value is estimated to be around Rs. 675 crores, with an execution timeline of 12 to 18 months.
Financials:
Looking at the company’s financial performance, the revenue zoomed around 693 percent from Rs. 3.77 crores during the March quarter to Rs. 29.88 crores in the June quarter. On the other hand, the net profits magnified by 1,064 percent from Rs. 45 lakhs to Rs. 5.24 crores during the same period.
Returns:
In August 2023, the stock price was trading at Rs. 5.60 exhibiting a gain of over 4,916 percent compared to the current price. For example, if someone had invested Rs. 10,000 into the company’s stock 1 year ago, it would have converted to approximately Rs. 5.01 lakhs now.
Customer Base:
Marsons Ltd has a diverse customer base that includes prominent domestic and international clients. Domestically, it serves major organizations such as the Power Grid Corporation of India (PGCIL), National Thermal Power Corporation (NTPC), and various State Electricity Boards across multiple states.
Internationally, Marsons exports to over 16 countries, with notable clients including Castle Cement in the UK and Yesu PLC in Ethiopia.
Company Proflie:
Incorporated in 1976, Marsons Ltd is a manufacturer and supplier of power and distribution transformers, specializing in a range of products including furnace transformers and dry type transformers, with capacities from 10 KVA to 160 MVA at 220 kV class.
Written By Vaibhav Patil
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