Stock below Rs 100: This micro-cap stock reported almost three-fold rise in net profit!

This exhibits a trend of sustained and improved profitability along with an operational turnaround of the business. 

The automobile industry is synonymous with the name Kinetic Engineering Limited (KEL), a company that has been spearheading revolution in the automobile industry for over five decades. While the pandemic forced everyone to go through a rough patch, post COVID, Kinetic continues to see aggressive profitability even in the current quarter. With renewed energy and dedication, Kinetic is staying true to being an industry leader.

In Q2FY22, the company witnessed a solid increase of 56 per cent in the total income from Rs 21.68 crore to Rs 32.71 crore over the same quarter in the last financial year. EBITDA for the same quarter also grew at a firm 136 per cent from Rs 1.63 crore to Rs 3.84 crore. On the other hand, compared to the last quarter ended June 21, the total income has increased 17 per cent from Rs 28.11 crore to Rs 32.71 crore while EBDITA grew 7 per cent from Rs 3.57 crore to Rs 3.84 crore. 

While people and companies are still finding their feet, the success garnered by Kinetic only speaks volumes of the demand & need of the services that the company provides. This continuous trend of growing profitability is very evident in the third consecutive quarter, where the net profit grew by 190 per cent QoQ all the way to Rs 58 lakh from Rs 20 lakh. Leaving behind a loss of Rs 168 lakh in the same quarter of the last financial year, the current quarter’s profit stands testimony to the company’s dedication, hard work and timely restructuring. This exhibits a trend of sustained and improved profitability along with an operational turnaround of the business. 

KEL’s esteemed customer list includes Renault, American Axle, Tata Motors, Mahindra & Mahindra, Ashok Leyland, Magna Powertrain, Bombardier Recreational Products, among others.