Back to back Upper circuit stock: This Micro-cap Tile Company Received an Order Worth Rs 50 crore; FIIs increased their stake in September Quarter!
The stock has given mutibagger returns of 238 per cent in the last year.
The shares of the company locked in the 5 per cent upper circuit back-to-back for two days amid work order received.
Nitco Ltd has been successful in making its first annual tie up with a tile dealer post initiation of its restructuring process and capital raising exercise. Based on a purchase order dated January 15, 2025, the Company has secured an order of Rs 50 Crore split into about Rs 4 Crore for the 4th Quarter of current financial year and about Rs 46 Crore for the next financial year from Hindustan Associates, one of the largest tile dealer in Mumbai.
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Nitco Ltd. engages in the manufacture, marketing, and distribution of tiles and marble products. It operates through the Tiles and Other Related Products and Real Estate segments. Its products include ceramic floor tiles, ceramic wall tiles, glazed vitrified tiles, and heavy duty tiles. The company was founded by Pran Nath Amar Nath Talwar in 1953 and is headquartered in Mumbai, India.
In the Quarterly Results of September 2024, the company reported revenue of Rs 66.01 crore, a decline of 18.03 per cent year-on-year (YoY) and 6.00 per cent quarter-on-quarter (QoQ) from Rs 80.53 crore in September 2023 and Rs 70.22 crore in June 2024, respectively. The net profit stood at a loss of Rs 34.60 crore, which showed an improvement of 9.32 per cent YoY from a loss of Rs 31.65 crore in September 2023 but a decline of 20.50 per cent QoQ from a loss of Rs 43.52 crore in June 2024. The net profit margin for the quarter was negative at 52.42 per cent, compared to negative 39.30 per cent in September 2023 and negative 61.98 per cent in June 2024.
For the financial year 2024 (FY24), revenue was Rs 325.22 crore, a drop of 15.24 per cent from Rs 383.69 crore in FY23. The net profit loss for FY24 was Rs 176.68 crore, an increase of 19.93 per cent compared to a loss of Rs 167.83 crore in FY23. The net profit margin stood at negative 51.61 per cent in FY24, wider than the negative 36.47 per cent reported in FY23.
FIIs have increased their stake in September quarter by 0.64 per cent. Company's working capital requirements have reduced from 110 days to 79.1 days with debtor days have improving from 66.0 to 41.8 days. The stock has given multibagger returns of 238 per cent in the last year. The company has market capitalisation of Rs 938 crore and its shares are trading at Rs 130 per share.
Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.