Narayana Murthy’s aerospace and defence multibagger stock reports a 106 per cent jump in net profit; scrip jumps 8 per cent!

The company's future revenue potential was Rs 2,286.6 crore as of September 30, 2023, based on its order book.

The Indian benchmark indices were trading in the green with the BSE Sensex Index up by 0.49 per cent at a level of 66,490 and the NSE Nifty-50 Index up 0.49 per cent at a level of 19,828.

This aerospace and defence multibagger stock has generated excitement since the pre-opening session, along with the market's positive performance. Here are the details: -

The standout stock in the market today is Cyient DLM Ltd.

The company announced its stellar Quarterly Results wherein the net sales increased by 71.51 per cent to Rs 291.84 crore in Q2FY24 compared to Q2FY23. The operating profit increased by 42.82 per cent to Rs 32.83 crore and the net profit skyrocketed by 106.38 per cent to Rs 14.65 crore in Q2FY24 compared to Q2FY23.

Cyient Ltd acquired Cyient DLM in two stages, in 2015 and 2019. In June 2023, Cyient DLM issued new shares, which diluted Cyient's stake to 67 per cent. Notably, Catamaran Ventures LLP, the investment arm of Infosys co-founder N.R. Narayana Murthy, has emerged as a shareholder in Cyient DLM.  Catamaran Ventures LLP owns 14,05,448 shares or 1.77 per cent stake in Cyient DLM as of September 2023.

Catamaran Ventures manages a massive USD 1 billion across different asset classes and invests in publicly traded companies with strong corporate governance, the ability to withstand economic cycles, and, of course, significant growth potential.

Today, shares of Cyient DLM gained over 8.68 per cent to an intraday high of Rs 748 per share from its previous closing of Rs 688.60. The shares of the company saw a spurt in volume by more than 2.11 times on BSE.

Cyient DLM is a trusted electronics and mechanical manufacturing partner and systems supplier to some of the largest players across multiple industries. It provides Design Led Manufacturing (DLM) solutions to customers, taking ownership of design, manufacturing, testing, and certification support to ensure that customers' products meet robust standards in reliability, safety, and performance. The company's future revenue potential was Rs 2,286.6 crore as of September 30, 2023, based on its order book.

The stock is up by 86.53 per cent from its 52-week low of Rs 401 per share. The company has been able to generate a high return on equity (ROE) of 36.9 per cent over the past 3 years.

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