Bulk Deal: Microcap stock crashes after promoter sells 7,69,000 shares in the Co

The shares of the electric manufacturer have fallen up to 2 percent after the company’s promoter offloaded 7,69,000 equity shares at an average price of Rs 118.29 per share via bulk deal

Price Movement 

With a market capitalization of Rs 581.76 crore, the shares of Elin Electronics Ltd were trading at Rs 116.10 per share, decreasing around 0.85 percent as compared to the previous closing price of Rs 117.10 apiece. 

Reason for fall 

The shares of Elin Electronics Ltd have seen bearish movement after Elin Appliances, part of the promoter group, offloaded 7,69,000 equity shares, which is equivalent to a 1.5 percent stake in the company at an average price of Rs 118.29 per share. As of December 2024, Elin Appliances, a promoter of the company, holds 17,34,000 equity shares, which is equivalent to 3.49 percent in the company. 

Financial performance 

Examining the company’s financial condition, revenue jumped by 12 percent from Rs 236.71 crore in Q3FY24 to Rs 266.32 crore in Q3FY25, and during the same time frame, net profit plummeted by 46 percent from Rs 2.64 crore to Rs 1.40 crore. 

Also read: Supreme Ind. in focus after signing $30 Mil MoU with Wavin India to acquire its piping business in India

New Developments 

The company is engaging with 4-5 potential customers in lighting, targeting two onboardings by early 2025. It is expanding into linear lighting to meet demand. Additionally, strong growth is expected in personal care with recent product launches, including sterilizers and new hair care products. 

Future Guidance 

The company projects an EBITDA margin of 5 percent to 5.5 percent for FY25, assuming stable raw material prices. Additionally, new product launches are expected to contribute 12 percent to 18 percent to revenue in the next fiscal year, driving growth and diversification in the company’s portfolio. 

Company snapshort 

Elin Electronics Limited is engaged in the business of electronics manufacturing services. The Company’s capabilities include development and engineering, electronics manufacturing services, motors manufacturing, tools manufacturing, press shop, injection molding, and die casting. 

Written by Abhishek Singh

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