One of the small-cap stocks specializes in the design, engineering, and fabrication of complex piping systems, pressure vessels, and heat exchangers. The stock has jumped 3.27 percent after securing an order worth $16.5 million for the Supply of prefabricated pipe spools
Stock Price Movements:
With a market capitalization of Rs. 2,446.93 crores, the shares of DEE Development Engineers Limited were to an intraday high of Rs. 357.50 per equity share, rising nearly around 3.27 percent from its previous day’s close price of Rs. 346.15. The stock is currently trading at Rs 354.35 per equity share.
What Happened:
The company secured a $16.5 million international order to supply prefabricated pipe spools from a new customer. The project highlights the company’s expanding global presence and will be completed by December 2026.
Order Book:
DEE Development Engineers Limited’s order book surged to Rs. 1,192.1 crore as of September 30, 2024, from Rs. 800.1 crore in June 2024. This robust growth is coupled with strategic customer segment investments and is expected to drive substantial top-line and bottom-line expansion.
Capacity Expansion:
DEE Development Engineers Limited is poised for significant capacity growth with the upcoming Anjar Facility II, increasing production from 6,000 to 15,000 metric tons by Q3 FY25, raising total capacity to 112,500 metric tons. Additionally, a Rs. 90 crore seamless pipe plant targets Rs. 450 crore annual revenue at peak capacity.
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Guidance and Future Plans:
DEE Development Engineers Limited plans to share medium-term guidance in the next earnings call, reflecting its updated business strategy and incorporating growth projections from the new seamless pipe project.
Manufacturing Facilities:
DEE Development Engineers operates manufacturing facilities in India and Thailand, with a total capacity of 70,875 MT. Key locations include Haryana, Gujarat, Rajasthan, Assam, and Bangkok. The company produces high-pressure piping systems, spools, pipe bends, LSAW pipes, industrial fittings, pressure vessels, and modular skids with accessories.
Recent quarter results and ratios:
DEE Development Engineers Limited’s revenue has increased from Rs. 179 crore in Q2 FY24 to Rs. 194 crore in Q2 FY25, which has grown by 8.38 percent. The net profit of DEE Development Engineers Limited has also grown by 120 percent, from Rs. 10 crore in Q2 FY24 to Rs. 22 crore in Q2 FY25.
DEE Development Engineers Limited’s revenue and net profit have grown at a CAGR of 16.81 percent and 22.92 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE should be 9.68 percent and 6 percent, respectively. The debt-to-equity ratio of the company is to be 0.48x. DEE Development Engineers Limited’s EPS is to be Rs. 7.63.
Company Overview:
DEE Development Engineers Limited was founded in 1988 and has established itself as a leader in the design, engineering, and manufacturing of complex piping systems, pressure vessels, and heat exchangers.
The company is a prominent engineering company based in India, specializing in process piping solutions for various industries, including oil and gas, power (including nuclear), and chemicals.
Written By: Nikhil Naik
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