Small-Cap Defence Company Secures Rs 1.35 Crore Order, Recently Expands Defence Portfolio with Stake Acquisition in Tripathi Aerotech and Weapons Manufacturing Pvt Ltd
The company’s shares have delivered an impressive return of over 290 per cent in the past year.
This Small-Cap engineering company secured a significant contract valued at Rs 1.35 crore (excluding taxes) for the supply of various mould bases. The order includes contributions from major clients such as CTM India Ltd (a unit of the Motherson Group), Mutual Engineering & Plastic Molds, and other prominent clients. Additionally, the company has ongoing work-in-progress orders worth Rs 10.82 crore.
The nature of the order involves supplying mould bases and ground plates for domestic clients, with a focus on expedited delivery. This new contract underscores STL’s capabilities in delivering high-precision engineering solutions tailored to client needs.
Share Performance
Currently, the shares of Sunita Tools Ltd are trading at around Rs 775 per share on the BSE. The current market capitalization stands at Rs 435 crore. The company’s shares have delivered a multibagger return of over 295 per cent in the past year.
Strategic Acquisition
Sunita Tools Ltd recently acquired a 55 per cent majority stake in Tripathi Aerotech and Weapons Manufacturing Pvt Ltd, marking a strategic move to expand its presence in the Defence, Aerospace, and Weapons sectors. The total cost of the acquisition remains undisclosed, and the formalities were completed within 60 days of the agreement. In partnership with Shigna Industrial Corporation, this acquisition enabled Sunita Tools to diversify its product portfolio and leverage its 36 years of technical expertise to manufacture gun parts, artillery shell cases, and other defence components for both the Indian and global markets.
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This acquisition strengthened Sunita Tools' infrastructure and multi-location manufacturing capabilities, positioning the company to handle large-scale orders in the aerospace and defence sectors. Tripathi Aerotech and Shigna Industrial Corporation, already established vendors for various Defence and Ordnance Factories in India, have enhanced Sunita Tools’ market position. The move is expected to contribute to the company’s profitability, with other subsidiaries in the group benefiting from the expanded manufacturing capabilities.
Business Overview
Incorporated in 1988, Sunita Tools Ltd (STL) specializes in the manufacturing, machining, and grinding of engineering goods, steel plates, and the production of mould bases and die sets. The company operates in the engineering and mould-based sector, providing customized solutions to industries such as automotive, pharmaceutical, electronics, and consumer goods. Its product portfolio includes ground plates, mould bases, and precision CNC-machined parts, which serve as critical industrial capital goods for these sectors.
Investors must keep this small-cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.