Heavy Electrical Equipment Company Bags New Order Worth Rs 40,00,00,000 From Karan Development Services Pvt Ltd, Gwalior (M.P.)

The stock gave multibagger returns of 104.4 per cent from its 52-week low is Rs 44 per share.

Jyoti Ltd has secured a Letter of Award (LOA) valued at approximately Rs 40 crore (excluding GST) from M/s. Karan Development Services Pvt Ltd., Gwalior (M.P.) for the Design, Manufacturing, Supply, Installation, Testing, and Commissioning of Electro-Mechanical (E&M) Works of the HANDIA BARRAGE -Hydro Electric Project (5 x 5000 KW + 10% COL) in Madhya Pradesh. This domestic order, awarded by a domestic entity, includes packing, forwarding, freight, and insurance. The payment terms will be as per the LOA, and the project is to be completed by January 23, 2027. The guarantee period for the works is 60 months from the date of commissioning.

Earlier, JYOTI LIMITED was involved in arbitration proceedings with Bharat Heavy Electrical Ltd (BHEL) before the Arbitral Tribunal in New Delhi. BHEL had filed a claim for approximately Rs 3,64,26,700 with interest, alleging that JYOTI LIMITED failed to supply goods as per a tender agreement. The Arbitrator, Mr Justice Jayant Nath (Retd.), passed an award on January 20, 2025, directing Jyoti Limited to pay BHEL Rs 1,26,14,545 plus interest and costs. JYOTI LIMITED is currently exploring the possibility of appealing this award.

Jyoti Ltd offers hydraulic and electrical products and services and designs and manufactures a wide range of Pumps and EPC Pumping Systems from concept to commissioning. The company is comprised of 2 divisions viz. project division and the switchgear division.

According to Quarterly Results, the net sales increased by 3.1 per cent to Rs 41.63 crore and net profit increased by 147 per cent to Rs 1.53 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, the net sales increased by 19 per cent to Rs 84.91 crore and net profit increased by 275 per cent to Rs 4.12 crore in H1FY25 compared to H1FY24.  

The stock gave multibagger returns of 104.4 per cent from its 52-week low is Rs 44 per share. Jyoti Ltd has a market cap of over Rs 140 crore and has delivered good profit growth of 31 per cent CAGR over the last 5 years. From Rs 3.89 to Rs 89.94 per share, the stock gave multibagger returns of 2,200 per cent in 5 years. Investors should keep an eye on this micro-cap stock.

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