This micro-cap company sued infra giant Larsen and Toubro, complete details inside

The shares of the company have delivered a return of over 300 per cent to its shareholders.

This micro-cap company is engaged in the manufacturing and trading of PVC, HDPE, SWR, Sprinkler, Drip, and CPVC pipes along with fittings. The company was incorporated in 2008. This company has sued infra giant Larsen and Toubro complete details are below.

Texmo Pipes and Products Limited, an operational creditor, has taken legal recourse against Larsen and Toubro Limited (L&T) for non-payment and withholding of outstanding dues related to the supply of goods.  The amount of the claim filed with the Hon’ble NCLT Tribunal is Rs 23.51 crore for the supply of goods.

L&T, a prominent conglomerate in India, now faces legal proceedings initiated by Texmo Pipes and Products Limited, marking another instance of creditor recourse under the IBC framework. The case underscores the significance of timely payments and contractual obligations in corporate transactions. The financial implications of this legal action are expected to unfold as the proceedings progress. However, as of now, no specific compensation, penalties, or other financial consequences have been outlined.

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Texmo Pipes and Products Limited's decision to pursue legal action underscores the importance of upholding contractual obligations and seeking redressal through legal channels in cases of non-payment. The outcome of this case will be closely watched within the corporate and legal spheres, as it sets a precedent for creditor rights and obligations under the IBC framework.

Today the company’s stock rallied 3.18 per cent and closed at Rs 76.63 per share on the BSE. The current market capitalization of the company stands at Rs 223.72 crore. Additionally, the stock has delivered a return of around 30 per cent in the past year.

According to the Quarterly Results, in Q4 FY24, the company reported a revenue of Rs 85.02 crore and a net loss of Rs 6.78 crore. In FY24, the company reported a revenue of Rs 534 crore and a net profit of Rs 5 crore, compared to a loss of Rs 72 crore in the previous year.

Investors must keep this micro-cap stock on their radar.

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