Shares of Surya Roshni hit the upper circuit on August 26; here's why

Surya Roshni Ltd is one of India’s largest players in the lighting segment.

Surya Roshni Ltd is the top gainer among S&P BSE group 'A' companies on August 26. The company's market capitalisation is Rs 2488 crore, and it is part of the BSE small cap index.  

Shares of Surya Roshni Ltd opened at Rs 385.16 on August 26 and are currently trading at its upper circuit price of Rs 457.3, up by 20 per cent from their previous close of Rs 381.15. The stock rallied as the management shared positive outlook for the business at yesterday's AGM.

Surya Roshni Ltd is India's largest exporter of ERW (Electrical Resistance Welding) pipes, the largest manufacturer of GI (Galvanised Iron) pipes, and the country's second-largest player in the domestic lighting industry.  

The company produced outstanding results in FY22. The company's revenue was up by 39 per cent in FY22, while its net profit, which was reported at Rs 204.92 crore, rose by 29.5 per cent. The company reported total revenue of Rs 1839 crore for the most recent June quarter, up 26.59 per cent year over year. However, from Rs 37.3 crore in Q1 FY22 to Rs 22.24 in Q1 FY23, the net profit fell by 40.38 per cent YoY. As per the FY22 period ending, the company has ROE and ROCE of 12.03 per cent and 12.65 per cent, respectively.   

The promoters own 62.96 per cent of the shares, followed by FIIs with 0.71 per cent, DIIs with 1.24 per cent, Surya Roshni Employees Welfare Trust with 1.99 per cent, and non-institutional investors with the remaining 33.1 per cent.  

The TTM PE of the stock is 10.92x, while the 52-week high and low for the stock remain at Rs 868.4 and Rs 336.05, respectively.