The shares of this microcap company jumped around 0.04 percent in Wednesday’s trading session after receiving an order worth Rs. 250 million from SAIL (NS:SAIL). In just six months, the stock has delivered more than a 200 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 155 crores, the shares of Simplex Castings Ltd (BO:SIMC) started Wednesday’s trading session on a flatter note at Rs. 255, gaining around 0.04 percent compared to its previous close of Rs. 224.90 apiece.
Is Simplex Castings 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:
According to the exchange filing, the company has received an order worth Rs. 250 million from SAIL. This order involves supplying 160 units of Sinter Machine Pallet Assemblies for the Sinter plant.
These high-end, special-grade components are designed to last over 15 years. The order is scheduled to be executed within 18 months.
Commenting on the development Ketan Shah, Chairman, said, “It is a matter of great pride and honour for us at Simplex Castings Ltd to be continually a trusted partner of India’s largest Steel manufacturing company – SAIL. This order is atestament of Simplex Casting Ltd.’s capability to deliver high quality products and we are confident of bagging many more such orders in the near future.”
Financials:
Looking at the company’s financial performance, the revenue decreased by around 13 percent from Rs. 31.47 crores during the March quarter to Rs. 27.49 crores in the June quarter. Contrastingly, the net profits jumped by 29 percent from Rs. 1.26 crores to Rs. 1.62 crores during the same period.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 7.21 percent and a return on capital employed (RoCE) of 16.52 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 1.95 percent.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters retain a majority stake of 52.39 percent in the company, indicating significant ownership and control. On the other hand, retail investors collectively hold 47.60 percent of the shares.
Company Profile:
Simplex Castings Ltd is a leading Indian manufacturer specializing in engineering products, particularly heavy engineering castings and fabricated items, for various core industrial sectors, including steel, power (thermal, hydel, wind), railways, mining, and cement.
Written By Vaibhav Patil
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