Felix Industries shares jumps 5% after signing contract with Oman based company

Synopsis:  Felix Industries Limited has recently informed the exchanges that its overseas subsidiary company has signed a contract with an Oman-based company for hazardous waste treatment and disposal. 

The shares of this microcap stock are majorly engaged in business of development of water & waste recycling and treatment system, jumped over 5 percent after signing the contract with the Oman based company. 

With the market capitalization of Rs. 267 Crores, the shares of Felix Industries Limited has reached intraday high of Rs. 163 per share, jumps over 5 percent from its previous day close of Rs. 155 per share and is trading at a P/E of 17 whereas industry P/E stands at 17.2

Felix Industries Limited has recently informed the exchanges that its overseas subsidiary company, Felix Industries LLC based in Oman has entered into a contract with Oman LNG LLC for hazardous waste treatment and disposal. The contract allows Oman based subsidiary companies to look after end to end hazardous waste management activities which includes collection of hazardous waste, treating it and making environmental safe disposal and recycling it with respect to compliance applicable with national laws. 

The contract will also allow the subsidiary company to secure waste collection orders from government bodies, revenue under this arrangement will be generated from waste collection services and recovered materials creating multiple revenue streams from the same operational activity. 

The pricing under the contract may vary depending upon the quantity of waste handled and the estimated minimum contract value is expected to be around Rs. 40 Crores or OMR 18,00,000. 

Felix Industries Limited is majorly engaged in the business of development of water & waste recycling and treatment systems whose business operations includes EPC, BOOT, O&M etc .The company’s project life cycle goes with Consultancy & Planning, Engineering & Design, Operation, maintenance & supply, Design& Build and after sales service. 

The company works across three main areas of waste management. It handles water and wastewater by treating industrial and domestic sewage, recycling water, and recovering fresh water where possible. It also manages solid waste such as hazardous industrial waste, municipal waste, and plastic waste. In addition, it provides solutions for hydrocarbon treatment and recycling, helping industries safely manage and recover hydrocarbons.

Year on Year analysis: Revenue from operations has increased from Rs. 8.01 Crores to Rs. 17.38 Cores, up 117 percent. Operating profit has increased from Rs. 0.54 Crores to Rs. 7.70 Crores, up 1,326  percent and net profit has increased from Rs. 0.31 Crores to Rs. 5.33 Crores, up 1619 percent 

Quarter on Quarter analysis: Revenue from operations has decreased from Rs. 20.62 Crores to Rs. 17.38 Crores, down 15.7 percent. Operating profit has increased from Rs. 5.58 Crores to 7.70 Crores, up 38 percent and net profit has increased from Rs. 3.56 Crores to Rs. 5.33 Crores, up 50 percent.

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