The shares of this pre-engineered steel construction provider rose above 9.94% after it received multiple orders worth Rs. 633.50 crores in the first half of FY25.
Stock Price Variations:
With a market capitalization of Rs. 1,306.35. crores, the shares of Interarch Building Products Limited opened the session with a gap at Rs. 1,256.00 representing a 6.30% increase from the previous day’s close of Rs. 1,181.50 per share. At 2:24 pm the share was trading at Rs. 1,303.90 reflecting a 10.36% gain compared to the previous day’s close.
Is Interarch Building Products 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.
Reason for Rise:
According to exchange filings, Interarch Building Products Limited has secured new orders totaling Rs. 633.5 crores for the first half of FY25. This includes Rs. 341.00 crores from the first quarter and an additional Rs. 293.00 crores in projects secured from Q2 up to September 14, 2024. As of that date, the company’s order book amounted to Rs 1,350 crores.
Some of the key orders include Rs.114 crores from Reliance Industries (NS:RELI), Rs. 60 Crores from Ampin Solar, Rs. 50 crores from Beumar India in the first quarter and an order worth Rs. 50 crores from Amaraja Infra, and another order of Rs. 25 crores in the second quarter till 14th September and many others.
Financials Performance:
For Q1 FY25 the company reported a net profit increase of 4.53 % to Rs. 20.28 crores compared to Rs. 19.4 crores in Q1 FY24, while revenue from operations marked an increase by 3.07% to Rs. 303.42 crores from Rs. 293.71 crores in comparison to the same period. The company has significantly reduced its debt and is now nearly debt-free. It also achieved a strong return on equity of 20% in FY24.
Future Outlook:
As a recently listed company on the BSE and NSE, the company has planned to invest the net proceeds of Rs. 200.00 crores from the fresh issue primarily to finance capital expenditures. This includes setting up a new manufacturing unit, upgrading the existing manufacturing facility, and enhancing its information technology infrastructure.
The company has recently commissioned Phase 1 of its fifth manufacturing unit in Andhra Pradesh, with a total installed capacity of 161,000 MTPA. Additionally, construction has begun on Phase 2, which will expand capacity by 40,000 MTPA and is expected to be completed by June 2025.
Management Expectations:
The management anticipates revenue growth of 10%-15% for FY25, with expectations to increase this to 15%-20% for FY26 and are aiming to double the revenue over the next 3-4 years.
About the company:
Incorporated in 1983 Interarch Building Products Limited is a pre-engineered steel construction solution provider in India with integrated facilities for design and engineering, manufacturing, on-site project management capabilities for the installation and erection of pre-engineered steel buildings.
As of Q1FY25 the company generates about 62% of its revenue from providing services to Industrial/Manufacturing companies and 36% from services to infrastructure companies. Its key customer base includes companies like Reliance Industries, Tata Advanced Systems, Ashok Leyland (NS:ASOK) , Pinnacle Industries,Brit Logistics etc.
Written By: Joseph Pv
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The post Smallcap stock jumps 10% after receiving orders worth ₹ 633.50 Cr for H1FY25 appeared first on Trade Brains.
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