This microcap engineering company is engaged in manufacturing plastic engineering components and sub-assemblies after reporting a 67 percent growth in net profits.
Price Movement
In Tuesday’s trading session, Master Components Limited stock hit a 5 percent upper circuit in the day’s trade after reporting H1FY25 results. The stock was at Rs. 294.60 by 4.99 percent from the previous closing price of Rs. 280.60. The stock has delivered a return of around 108 percent in the past year and outperformed Nifty in the same period.
What happened
The company released its H1FY25 results. Their H1FY25’s revenue from operations stood at Rs. 17.72 crore increasing by 54.35 percent year on year from Rs. 11.48 crore in H1FY24. From H2FY24, the revenue was up by 28.43 percent.
Net Profits in H1FY25 stood at Rs. 1.67 crore which saw a 67.28 percent increase year on year from Rs. 1.00 crore in H1FY24. From H2FY24, the profits stayed flat from Rs. 1.67 crores.
The return on equity in FY24 stood at 15.47 percent slightly down from 15.83 percent a year ago. The debt-to-equity ratio was 0.02 times which has decreased from 0.12 times in FY23. However, the return on capital employed has stood at 20.48 percent which has marginally declined from 20.85 percent in FY23.
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Revenue Segment
According to the company’s annual report, they considered revenue from a single source. They derive their revenue from the manufacturing of plastic engineering components and sub-assemblies as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a major share of 72.45 percent stake in Master Components. and public holdings stand at 27.55 percent.
About the company
Master Components Limited was founded in 1999 and they specializes in manufacturing plastic engineering components and subassemblies. They offer a diverse range of moulding services which includes thermoplastic injection moulding and compression moulding. They cater to various sectors such as the automotive and electrical industries. Their strategic location near the Mumbai-Pune Highway improves their logistical efficiency.
The company operates on a business model that improves quality and customization which allows it to serve multinational corporations and smaller businesses effectively. They aim to expand their market presence through continuous innovation. Despite challenges such as raw material cost, regulatory compliance and competition they are well positioned through strategic adaptions through technology advancements.
Written by Santhosh S
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