The shares of this microcap company locked a 2 percent upper circuit after receiving an order worth Rs. 298 crores from National Small Industries Corporation Ltd. In just six months the stock has delivered more than 80 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 437 crores, the shares of Lehar Footwears Ltd started Monday’s trading session on a higher note at Rs. 247.25, clocking a 2 percent upper circuit compared to its previous close of Rs. 242.25 apiece.
Is Lehar Footwear a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had entered into an agreement with National Small Industries Corporation Ltd. for the supply of a Toolkit worth Rs. 298 to enhance the capability and productivity of artisans and craftspeople registered under the PM Vishwakarma Scheme.
Financials:
Looking at the company’s financial statements, revenue surged by 66 percent from Rs. 38.06 crores during the March quarter to Rs. 63.20 crores in the June quarter. In addition, the net profits zoomed by 95 percent from Rs. 1.22 crores to Rs. 2.38 crores during the same period.
During the recent quarter, the company’s exports grew by 35 percent year-over-year and continued to expand its market presence in Southeast Asia, the Middle East, and Africa. The company anticipates sustained growth and an increased contribution from this segment in the future.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 6.41 percent and a return on capital employed (RoCE) of 12.10 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 3.37 percent.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters maintain ownership of 72.90 percent. The remaining 27.09 percent of shares are held by Retail Investors.
Company Profile:
Incorporated in 1994, Lehar Footwear Ltd. is a leading manufacturer and supplier of high-quality footwear for men, women, and children. The company specializes in manufacturing footwear using materials like Poly-Urethane (PU), Poly Vinyl Chloride (PVC), Ethylene-Vinyl Acetate (EVA), and Thermo Plastic Rubber (TPR).
Written By Vaibhav Patil
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