Ashish Kacholia-Backed Defence Stock Hits Upper Circuit, Reported Strong Q1 FY25 Update with Rs 2,286 Million Order Book, Equivalent to 2.15x FY24 Revenue!

The company’s shares have delivered a multibagger return of over 230 per cent to its shareholders in just 1 year.

Krishna Defence is a vertically integrated defense solutions provider, renowned for its indigenously developed products. The company's shares, which supply both the Indian Navy and Army and also cater to the Defense, Homeland Security, and Dairy sectors, have been hitting upper circuits for the past two consecutive days. The company has recently announced a significant business update for Q1FY25 as follows:

• Revenue Highlights: In Q1FY25, Krishna Defence achieved a remarkable 181% increase in revenue compared to Q1FY24, reaching Rs 453.8 million, up from Rs 161.2 million in the same quarter last year. The Defence sector contributed a substantial 97% of the revenue, amounting to Rs 440.5 million, while the Dairy segment added Rs 13.3 million.
• Open Order Book: As of June 30, 2024, the company reported an open order book worth Rs 2,286 million, equivalent to 2.15 times the FY24 revenue. This strong order pipeline highlights promising ongoing revenue opportunities.
• New Product Development: Krishna Defence has entered into a strategic partnership with Vabo Composite, a Netherlands-based leader in innovative composite products. The Memorandum of Understanding (MoU) between the two companies focuses on manufacturing and supplying composite doors and hatches to the Indian Navy and the ASEAN market, both identified as significant growth areas.
• New Approvals: The company has successfully obtained certifications from the American Bureau of Shipping (ABS) and Det Norske Veritas (DNV) for its steel sections. This achievement is set to expand Krishna Defence's market opportunities beyond naval applications, enhancing its presence in the global defence sector.

At the start of Tuesday's trading session, shares of Krishna Defence opened at Rs 738.95 per share, compared to the previous day's closing figure of Rs 709 per share on the NSE. Finally, the shares are closed at Rs 744.45 per share. The stock has rallied 5 per cent and hit the upper circuit, reflecting strong demand in the market. The company's current market capitalization stands at Rs 1046.62 crore. The shares have delivered a multibagger return of over 730 per cent in just 2 years.

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