Under Rs 100 Crore Market Cap Stock Bags Rs 5.7 Crore Order – Multibagger Alert?
Stock Trading at Low P/E with Strong Future Prospects
H.M. Electro Mech Limited has received a new purchase order for supplying MS pipes and internal lining materials. The total value of the order is Rs 5.70 crore, inclusive of all taxes. This is a one-time order from an existing customer, and the delivery is scheduled before March 31, 2025.
Business Overview and Services
Incorporated in 2003, H.M. Electro Mech Limited specializes in infrastructure projects, particularly turnkey solutions for pumping machinery. The company provides installation, testing, and commissioning (SITC) services, along with operation and maintenance (O&M) for completed projects. It also engages in the sale of engineering products, including pumps, pipes, transformers, and motors.
Market Segments and Expertise
H.M. Electro Mech operates in two primary segments: work contract services and product sales. Under work contract services, it delivers SITC solutions for pumping machinery and related infrastructure. The O&M segment ensures continued performance of its projects. The company is also an authorized dealer for WILO Mather and Platt Pumps Pvt. Ltd., supplying high-quality engineering products.
Company’s Industry Standing
H.M. Electro Mech holds a Class 'AA' EPC Contractor certification, the highest for EPC contracts in Gujarat. It is also authorized for electrical installation work and is recognized by the Government of Rajasthan.
Stock Performance and Valuation
The company has a market capitalization of Rs 98.6 crore. The stock trades at a price-to-earnings ratio of 12, significantly lower than the industry average of 30. The return on capital employed (ROCE) is 33.9 per cent, while return on equity (ROE) stands at 29 per cent. The debt-to-equity ratio remains low at 0.21, indicating a strong financial position.
Future Outlook
With continued orders and strong execution capabilities, H.M. Electro Mech is well-positioned for growth in infrastructure projects. The company aims to expand its presence while maintaining operational efficiency and financial stability.
Disclaimer: The article is for informational purposes only and not investment advice.