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Smallcap stock jumps 5% after company’s net profit increases by 78% YoY

Published 05-11-2024, 04:32 pm
Updated 05-11-2024, 05:47 pm
© Reuters.  Smallcap stock jumps 5% after company’s net profit increases by 78% YoY
EMKY
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Small cap stock, which manufactures taps & cutting tools, surged nearly 5 percent following a 78 percent year-on-year growth in net profit for Q2 FY25.

Share price variations:

With a market capitalization of Rs. 1,386.20 crores, Emkay Taps And Cutting Tools Ltd (NS:EMKY). rose to an intraday high of Rs. 1,300.00 representing a 4.9 percent increase from its previous closing price of Rs. 1,239.15 per share.

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Reason for the Rise:

According to exchange filings, Emkay Taps and Cutting Tools Ltd. reported a 78.18 percent year-on-year increase in net profit for Q2 FY25, reaching Rs 54.98 crore, up from Rs 30.86 crore in Q2 FY24. On a quarter-on-quarter basis, net profit surged by 34 percent, rising from Rs. 41.03 crore in Q1 FY25.

Their total revenue grew by nearly 50 percent year-on-year to Rs. 98.14 crore, compared to Rs. 65.45 crore in the same period last year. Sequentially, revenue increased by 18.5 percent from Rs. 82.81 crore in Q1 FY25.

The segment-wise revenue stands at Rs. 54.06 crores from the manufacturing of taps & cuning tools contributing 55 percent to the total revenue while 0.83 percent from the production of power through windmills and 44 percent from other sources.

About the company:

Incorporated in 1995, Emkay Taps & Cutting Tools Ltd specializes in manufacturing taps and cutting tools and generates power through windmills located in Rajasthan and Karnataka. The company operates manufacturing facilities across four locations and currently has a production capacity of approximately 2 lakh threading taps per month.

Emkay’s product portfolio includes a wide range of taps, such as straight flute, spiral point, spiral flute, and fluteless taps, as well as specialized taps for cast iron, pipe, and Nut/NIB applications. These products serve diverse sectors, including automotive, agriculture, engines, electrical, and other industrial applications.

Written By: Joseph Pv

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