Stock under Rs 100: This engineering company receives order worth Rs 91,34,002 from Ministry of Defence; likely to enter railways sector!

Shares of the company have gained 65 per cent in the last six months.

Ameya Precision Engineers Ltd informed the exchange (NSE – SM: AMEYA) that the company has received an order from Defence Research and Development Organization (DRDO)- Armament Research & Development Establishment {ARDE} a Government of India, Ministry of Defence for the supply of PCB Empty Assy (LR-LACM). The said receipt of the purchase order worth Rs 91,34,002 (inclusive of taxes) would enhance the customer base in the new sector of defence and would contribute towards the profitability of the company.

Ameya Precision Engineers Limited is engaged in manufacturing high-end precision components (shafts, and other trim components) for the general engineering industry, focussing on valve and pump manufacturing.

In its annual report for 2022-2023, the company announced that it had added new customers like KSB Ltd. It is also exploring opportunities in the defence and railway sectors, and expanding its customer base with existing customers. The management is confident that it will gain more customers in the coming years. The company has received its first order from the defence sector. This is a significant milestone, and the company is excited to explore more opportunities in this sector. The company is also focusing on receiving orders from the railways sector. This is another large and growing market, and the company believes that it has the capabilities to succeed in this sector.

On Tuesday, one of the Top Gainers on NSE, shares of Ameya Precision Engineers zoomed 5.12 per cent to Rs 58.50 per share with an intraday high of Rs 59.40 and an intraday low of Rs 54.30.

Ameya Precision Engineers Ltd is a micro-cap company with a market cap of Rs 43.87 crore. The company has reduced its debt and it is almost debt-free. Additionally, the company reported excellent numbers in its half-yearly results (H2FY23) and annual results (FY23).

Shares of the company have gained 65 per cent in the last six months. Investors should keep an eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice.