Shares of a company engaged in the engineering and mould base industry are in focus during the trading session on Tuesday, after the company announced signing an International Cooperation Agreement or MoU with an Israel-based defence company.
With a market cap of Rs. 574.3 crores, the shares of Sunita Tools Limited opened in the red at Rs. 940, down by 2 percent, as against its previous closing price of Rs. 959.15.
What’s the news
According to the latest regulatory filings with the BSE, Sunita Too Limited has signed a non-exclusive, non-binding International Cooperation Agreement (ICA)/Memorandum of Understanding (MoU) with PIM Limited, an Israeli defence company regulated by the Israel Ministry of Defence.
The main objectives of the ICA/MOU are as follows: sourcing transfer of technology (TOT), royalty deals, joint ventures (JVs), and buyouts in the defence and aerospace sectors; securing new orders for products manufactured by the Sunita Group; facilitating cooperation between buyers and sellers of defence items within their network; and addressing any other requirements related to defence, paramilitary, aerospace, and similar products.
PIM Limited is directly related to product categories including air defence, armament, anti-tank systems, body armour and helmets, land systems, armoured boats, ammunition, artillery and missile systems, and drone systems.
Through this collaboration, Sunita Tools aims to achieve rapid global reach in the defence sector.
About the Partner Entity
PIM Limited is an Israeli defence company, regulated under the Israel Ministry of Defence and registered with VAT and the Companies Registrar in Israel.
It is led by a team of highly experienced veterans, including former senior officers from the Israeli Navy, with over 30 years of expertise ammunition.
PIM Ltd specializes in the planning, design, and execution of turnkey projects within the defence industry, leveraging a global network of suppliers and manufacturers.
With extensive backgrounds in military and homeland security (HLS), PIM Ltd is well-connected with manufacturers worldwide in both the military and law enforcement sectors, offering a diverse range of products.
Additionally, PIM Ltd maintains strong connections with Israeli technologies and companies, collaborating in the fields of defence a aerospace.
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Financials
The company reported a significant growth in revenue from operation experiencing a year-on-year rise of nearly 79.3 percent, increasing from Rs. 8.55 crores in H1 FY24 to Rs. 15.33 crores in H1 FY25.
Similarly, during the same period, the company’s net profit increased fr Rs. 1.6 crores to Rs. 3.4 crores, representing a rise of around 112.5 percent YoY.
Stock Performance
The stock has delivered multibagger returns of nearly 267 percent in one year, while around 6.4 percent of positive returns in the last six months. Likewise, the shares of Sunita Tools have given positive returns of about 15 percent in the last one month.
About the company
Sunita Tools Limited is engaged in the business of engineering and mould base industry. It manufactures ground plates, mould bases, and precision CNC machining.
The company’s products serve as essential components for the manufacturing industries, spanning automotive, pharmaceutical, electronics, consumer goods, aerospace and numerous other sectors.
Written by Shivani Singh
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