High ROE & ROCE Stock Secures Rs 24.71 Crore Order from Indian Air Force for Troop Carriers (Defense Ministry)
With a PE ratio of 13.3x, the company trades at a discount compared to the industry PE of 18.7x. The company has ROCE of 23.6 per cent and ROE of 46.1 per cent.
SML Isuzu Limited has received an order from the Department of Military Affairs under the Ministry of Defence for the supply of BS VI, 4-Wheel Drive Troop Carriers with 20 seats. The order, awarded through the Government e-Marketplace (GEM) tender process, follows standard business norms and conditions.
The contract involves the delivery of 114 units at a total value of Rs 24.71 crore. The execution period for the order is from March 11, 2025, to July 9, 2025. The order has been placed by a domestic entity, with no adverse terms or conditions under the contract.
DSIJ offers a service 'Pop BTST" with recommendations for intraday stocks for tomorrow based on research and analysis to help subscribers make healthy profits. If this interests you, then do download the service details pdf here
SML ISUZU LIMITED was incorporated as Swaraj Vehicles Ltd in 1983 and was promoted by Punjab Tractors Ltd with technical collaboration Mazda Motor Corporation, Japan, and Sumitomo Corporation, Japan. In 2004, the technical collaboration agreement with Mazda expired 2004 and sold its entire stake to Sumitomo Corporation and in the same time, it signed a technical assistance agreement with Isuzu Motors. In 2011, it was renamed as SML ISUZU and Sumitomo Corporation(Japan) and Isuzu Motors(Japan) own 44 per cent and 15 per cent stake, respectively.
In the Quarterly Results of December 2024, the revenue stood at Rs 331.80 crore, reflecting a decline of 14.07 per cent YoY and 39.64 per cent QoQ. The net profit was Rs 0.53 crore, decreasing by 80.22 per cent YoY and 97.57 per cent QoQ. The net profit margin for the quarter was 0.16 per cent, compared to 3.97 per cent in September 2024 and 0.69 per cent in December 2023.
For the financial year 2024, the revenue was Rs 2,195.93 crore, marking a growth of 20.55 per cent compared to FY23. The net profit for FY24 was Rs 121.04 crore, showing an increase of 512.80 per cent from Rs 102.46 crore in FY23. The net profit margin for FY24 stood at 4.67 per cent, higher than 0.92 per cent in FY23.
As of December 2024, the shareholding pattern stands as follows: Promoters hold 43.96 per cent, Foreign Institutional Investors (FIIs) hold 15.32 per cent and the Public holds 40.72 per cent.
With a PE ratio of 13.3x, the company trades at a discount compared to the industry PE of 18.7x. The company has ROCE of 23.6 per cent and ROE of 46.1 per cent.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.