During Thursday’s trading session, the shares of a company engaged in manufacturing steel forgings in India surged nearly 18.7 percent to Rs. 74.75 on NSE, after the company reported updates on its order book, capex, Solar Power Project implementation and more.
With a market cap of Rs. 143.6 crores, at 02:06 p.m., the shares of Paramount Speciality Forgings Limited were trading in the green at Rs. 72.95, up by nearly 15.8 percent, as compared to its previous closing price of Rs. 63.
What’s the news
According to the latest regulatory filings with the NSE, Paramount Speciality Forgings Limited (PSFL) has reported updates on its order book, capital expenditure, Solar Power Project implementation and more. The highlights are as follows:
(i) Standalone Financial Performance: PSFL achieved a provisional Year-To-Date (YTD) net sales figure of Rs. 80.6 crores, significantly higher than the Rs. 47.4 crores in gross sales recorded for the half-year ending 3rd September 2024.
For Q3 FY25, the company reported standalone provisional sales of Rs. 33.2 crores, showcasing strong operational performance and sustained growth momentum.
(ii) Order Book Update: The company has secured an order book position of ~Rs. 52 crores as of 31st December 2024.
Notably, in December alone, PSFL added Rs. 14.5 crores to its order book, driven by contributions from new projects for a leading petrochemical major’s expansion worth Rs. 4.3 crores, export orders worth Rs. 4.5 crores, and infrastructure-related projects worth Rs. 2.02 crores.
(iii) Capex Funded by IPO Proceeds: The company’s capex plan, financed by IPO proceeds, is slightly ahead of the original schedule outlined during the IPO.
Once completed, the capex is expected to enable the company to achieve higher revenue, enhance margins through improved inventory management, and resolve manufacturing bottlenecks, thereby boosting operational efficiency.
(iv) Solar Power Project Implementation: In line with its sustainability goals and renewable energy commitments, PSFL has initiated a Solar Power Project at its facility. The project aims to enhance environmental sustainability while improving margins by reducing energy expenses.
The project is planned to have a capacity ranging from 800 KW to 1 MW and will be financed through a term loan secured from a bank, with an estimated payback period of 3–4 years post-commissioning.
The company is currently inviting proposals from qualified vendors, with the selection process expected to conclude within 3–5 months. Once the purchase order is issued, the project is projected to be completed within 4 months.
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Financials
Paramount Speciality Forgings reported a marginal decline in revenue from operations, experiencing a year-on-year decrease of nearly 7.8 percent, falling from Rs. 51 crores in H1 FY24 to Rs. 47 crores in H1 FY25.
Similarly, during the same period, the company’s net profit decreased from Rs. 3 crores to Rs. 2 crores, representing a slight decline of around 33.3 percent YoY.
About the company
Paramount Speciality Forgings Limited is engaged in the business of manufacturing steel forging products, offering a diverse range of forged products, such as tube sheets, custom girth flanges, rings, self-reinforced nozzles, valve bodies, adaptors, trunnion shafts, forged sleeves, and pipe joint flanges.
Written by Shivani Singh
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