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This Microcap stock deals in the business of designing, fabrication, engineering, and installation of façade systems and was up 4 percent intraday trade after the board approved the acquisition of Chrome Coaters for a 61% stake.
Price Action (WA:ACT)
With a market capitalization of Rs.42.42 Crores, the shares of Faalcon Concepts Ltd (BO:FAAL) were up by 4.39 percent in the day’s trade touching a day’s high of Rs. 63.70 per share. The stock reiterated from the day’s high and was trading at Rs. 62.11 per share which is 1.79 percent higher than the previous closing price of Rs. 61.02 apiece.
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What Happened
The stocks of Faalcon Concepts rose after the company’s board approved the proposal for the acquisition of Chrome Coaters. As this is a related party transaction, the company approved paying the consideration through the issuance of shares of Faalcon Concepts on a preferential basis to acquire 61 percent of the target company which is based on approval from shareholders in the upcoming EGM dated 10th January 2025.
The chrome coaters are in the business of Aluminium Coating and this 61 percent stake in the company is worth Rs. 23.15 crore as determined by the valuation report. The turnover of Chrome Coaters in FY23-24 stood at Rs. 5.47 crore and has more than doubled from Rs. 2.43 crore in FY22-23. Post transaction the Chrome Coaters will be a subsidiary of Faalcon Concepts.
About the Company
Faalcon Concepts Limited was established in 2018 and is headquartered in Gurugram. They specialize in designing, fabricating, engineering, and installing complex facade systems. They offer a diverse range of products which include glazing, curtain walls, and aluminum doors, ensuring durability against environmental factors.
Their business model focuses on providing tailored solutions for technically demanding projects across India and internationally, catering to various sectors such as education and luxury residential. They aim to improve operational capabilities through strategic investments in equipment and working capital while maintaining a commitment to innovation and customer satisfaction.
Financials & Ratios
Its Revenue from operations increased by 37 percent year on year from Rs. 9.44 Crore in H1FY24 to Rs. 12.93 Crore in Q2FY25, accompanied by profits of Rs. 0.92 Crore to Rs. 1.25 Crore.
In terms of Return ratios, it has reported a return on equity (ROE) of 39.96 percent and a return on capital employed (ROCE) of 38.57 percent. It has a net profit margin of 10.97 percent as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 65.56 percent in Faalcon Concepts, Domestic Institutional Investors (DII) holding around 0.03 percent, and public holdings standing at 34.41 percent.
Written by Santhosh S
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