Synopsis: The company has secured asignificant defence-related order, strengthening its position in the segment and improving medium-term business visibility through steady execution over the coming period.
The shares of this microcap stock majorly engaged in manufacturing iron and steel forging, hits upper circuit after securing large defence order. With the market capitalization of Rs. 103 Crores, the shares of Hilton Metal Forging Ltd, hit upper circuit of Rs. 20.79 per share raising 20 percent hitting the upper circuit from its previous day closing of Rs. 17.35 and is trading at a P/E of 13.1 whereas industry P/E stands at 24.6.
What is the NEWS
Hilton Metal Forging Limited has bagged an order in the defence segment for supplying 3,60,000 pieces of 155mm M107 Empty Bomb Artillery Shells. This order can be regarded as a significant addition to the company’s order book. The order value stands at Rs. 720 crore, which needs to be executed over a period of 24 months. The company will supply these products at the rate of 15,000 pieces every month, thereby ensuring a continuous flow of revenue during the period of execution.
The order has been received from a local entity; however, the company has not disclosed the name due to confidentiality reasons. The order is subject to certain conditions, including the approval of the prototype/sample batch of 10 pieces and the payment of advances after obtaining approval. Further, the company has also stated that there are no promoters or any form of controlling interest in the receiving entity, thereby ensuring transparency. This order can be regarded as a positive addition to the company’s order book in the defence segment, while also ensuring a continuous flow of execution.
About the Company and Financials
Hilton Metal Forging Limited is an Indian manufacturing company that specializes in forging and machined parts used in various critical sectors. Their products are used in various sectors like the oil and gas industry, petrochemical industry, and defense. Over time, they have developed expertise in dealing with complex and precision-oriented manufacturing activities. This is vital for sectors that demand product durability and quality.
The company has also been able to expand its market beyond India and deliver products to various international customers. In this context, exports also play a vital role in Hilton Metal Forging Limited’s activities. By maintaining product quality and delivery times, they have been able to establish themselves as a supplier that can deliver critical products to both domestic and international customers.
Year on Year analysis: Revenue from Operations has increased from Rs. 40.29 Crores to Rs. 69.84 Crores, up 73 percent. Operating profit has increased from Rs. 2.77 Crores to Rs. 3.47 Crores, up 25 percent and net profit has increased from Rs. 0.45 Crores to Rs. 1.42 Crores, up 215 percent
Quarter on Quarter analysis: Revenue from operations has decreased from Rs. 87.64 Crores to Rs. 69.84 Crores, down 20.3 percent. Operating profit has increased from Rs. 3.40 Crores to Rs. 3.47 Crores, up 2 percent and net profit has decreased from Rs. 1.74 Crores to Rs. 1.42 Crores, down 18.3 percent
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