Multibagger Stock: This micro-cap metal company bags order worth Rs 25,00,00,000 from Steel Authority of India Ltd
The stock has delivered multibagger returns of 322.29 per cent in a year.
Simplex Castings Ltd, a premier manufacturer of castings and engineering solutions has been awarded with an order of Rs 25 crore from SAIL. The order is for the supply of 160 nos Sinter Machine Pallet Assemblies for Sinter plant. These are high end special grade cars with a life of more than 15 years. Timeline for execution of order is 18 months.
Commenting on the development Ketan Shah, Chairman, said, “It is a matter of great pride and honour for us at Simplex Castings Ltd to be continually a trusted partner of India’s largest Steel manufacturing company – SAIL. This order is a testament of Simplex Casting Ltd.’s capability to deliver high quality products and we are confident of bagging many more such orders in the near future.”
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As per the latest filing, the promotor holds a 52.39 per cent stake and the public holds 47.60 per cent shareholding. The company has shown 49 per cent annual compounded profit growth in the last 3 years.
In the Quarterly Results of June 30, 2024, revenue decreased to Rs 27.49 crore, down 20.78 per cent year-on-year and 12.65 per cent from the previous quarter. However, net profit increased significantly to Rs 1.62 crore, marking a 268.18 per cent rise year-on-year and a 28.57 per cent increase compared to the previous quarter. For the full financial year, revenue grew by 4.27 per cent to Rs 122 crore, while net profit saw a dramatic turnaround from a loss of Rs 17 crore in FY23 to a profit of Rs 2 crore in FY24.
Simplex Castings Ltd has a market cap of Rs 156 crore and is currently trading at Rs 226. The stock has a 52-week high of Rs 233 and a low of Rs 46.5. Over the past year, it has given multibagger returns of 322.59 per cent.
Incorporated in 1980, Simplex Castings Ltd manufactures SG Iron, Steel, Special Alloy Castings, C.I. Castings and Equipment.
Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.