Multibagger Defence Stock Hits Upper Circuit; Secures Order Worth Rs 52,90,16,880 – Profit Surges 180 Per cent, Margins Nearly Double in Q2 FY25
The company’s shares have delivered an impressive multibagger return of over 590 per cent in just 2 years.
Tembo Global Industries Ltd a prominent player in engineering, mechanics, design, and project execution, has secured a significant domestic order worth Rs 52,90,16,880 for a water irrigation project. This marks a key milestone in the company’s dedication to supporting critical infrastructure development across various sectors. The order, which involves the supply of Ductile Iron (DI) pipes, is set to be completed within 12 months, demonstrating Tembo Global’s efficiency and commitment to timely project delivery.
This is the company’s second major order in a short span, further bolstering its growing portfolio. The achievement reinforces its strong presence in industries such as oil and gas, chemicals, construction, power, shipbuilding, nuclear energy, HVAC, anti-vibration systems, and installations for industrial, commercial, utility, and OEM applications.
Financial Performance
The company has announced stellar Quarterly Results and in Q2 FY25, Tembo Global Industries Ltd recorded a revenue of Rs 164 crore compared to Rs 109 crore representing a growth of 50 per cent YoY. The operating profit stood at Rs 15 crore with an operating margin of around 9 per cent. The net profit stood at Rs 14 crore compared to a profit of Rs 5 crore representing a growth of around 180 per cent YoY. The net profit margins nearly doubled in the same period.
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Looking at the annual performance, the company generated a revenue of Rs 432 crore in FY24. The operating profit for FY24 was Rs 19 crore with a net profit of Rs 14 crore compared to a net profit of Rs 6 crore in FY23.
Stock Performance
Currently, the shares of Tembo Global Industries Ltd hit the upper circuit and are at around Rs 709.25 per share on the NSE. The company’s current market capitalization stands at Rs 787.53 crore. Additionally, the shares have delivered an impressive multibagger return of around 195 per cent in the past 1 year only.
Strategic Partnership in Defence Manufacturing
Recently in September, TGIL announced a major strategic partnership with a prominent European company to establish a cutting-edge arms and ammunition manufacturing facility in India. This newly signed MoU represents a significant milestone for Tembo Global as it ventures into the defence manufacturing sector, backed by a well-established international partner.
A key component of the agreement is a strategic buy-back arrangement, under which the European company will purchase a substantial portion of the firearms produced by Tembo Global. This move strengthens Tembo Global's presence in the defence industry and bolsters its operational capabilities.
Disclaimer: The article is for informational purposes only and not investment advice.