The shares of this automotive equipment manufacturer gained up to 8 percent after the company received purchase orders from CNH Industrial (BIT:CNHI) (India) Private Limited worth Rs 83.12 lakhs.
With a market capitalization of Rs 78.78 crore, the shares of Kranti Industries Ltd (BO:KRAI) were trading at Rs 78.78 per share, increasing around 5.40 percent as compared to the previous closing price of Rs 65.50 apiece.
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Reason for Rise:-
Today, the shares of the company have seen a positive movement after Kranti Industries Ltd received purchase orders from CNH Industrial (India) Private Limited for the development and supply of three key product assemblies: Knife, Arm HD, Frame Knotter Assembly, and LatchAssembly, as part of their Agri Implements initiative which is valued at Rs 83.12 lakhs.
Moreover, this strategic collaboration enhances Kranti Industries’ position in the agricultural equipment sector, showcasing its advanced manufacturing capabilities and reinforcing its reputation as a trusted partner in this rapidly growing market.
Furthermore, Kranti’s subsidiary, Preciso Metall Pvt. Ltd., will be instrumental in sourcing raw castings, demonstrating the company’s integrated operational approach. This enables cost efficiency while ensuring rigorous quality control throughout the production process.
Financial performance:-
Looking into the company’s financial performance, revenue plummeted by 22 percent from Rs 25.87 crore in Q1FY24 to Rs 20.17 crore in Q1FY25, and during the same time frame, net profit shrunk by 800 percent from Rs 0.14 crore profit to Rs 0.98 crore loss.
Ratio analysis:-
Examining the company’s crucial ratio, return on equity declined from 19.03 percent in FY22-23 to 0.21 percent in FY23-24, while during the same time frame return on capital employed also declined from 19.72 percent to 4.54 percent. In contrast, the net profit margin (NPM) stands at 0.08 percent in fiscal year 22-23.
Shareholding pattern:-
In the company’s recent shareholding pattern, the Promoters of the company own 69.1 percent while Retail shareholders own a 30.9 percent stake in the company, and Foreign Institutional Investors own a 0 percent stake.
Company Profile:-
Kranti Industries Limited is an India-based precision machining firm that operates in the auto auxiliary and allied industries. The company provides engineering goods to vehicle manufacturing businesses such as CNH Industrial (India) Pvt. Ltd., Graziano Transmission India Pvt. Ltd., Escorts Limited (NS:ESCO), and Neosym Industry Limited.
Written by:- Abhishek Singh
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