Metal stock jumps 10% after signing MoU with Eltria Lands for real estate project in Maharashtra

The shares of the metal product manufacturer gained up to 10 percent after the company entered a memorandum of understanding with Eltria Lands LLP. 

Price Movement 

With a market capitalization of Rs 162.56 crore, the shares of La Tim Metal & Industries Ltd were trading at Rs 12.50 per share, increasing around 2.88 percent as compared to the previous closing price of Rs 12.15 apiece. 

Reason for rise 

The shares of La Tim Metal & Industries Ltd have seen positive movement after the company and its promoters entered an MoU with Eltria Lands LLP (LLIPIN ACL 7590) to develop 150 acres (607,050 sq. m) in Khopoli for second-home plotting. Phase 1 covers 230,679 sq. m over three years, extendable. Developers will pay La Tim an Rs 8 crore refundable security deposit. The company is estimated to generate revenue of Rs. 70 crores approx as sale proceeds of the First phase. 

Financial performance 

Examine the company’s financial condition, revenue slipped by 49 percent from Rs 94.72 crore in Q3FY24 to Rs 47.83 crore in Q3FY25, and during the same time frame, net profit dipped by 64 from Rs 1.83 crore to Rs 0.65 crore. 

Also read: Navratna stock jumps over 8% after raising ₹1,247 Cr via issue of Perpetual Bonds

Ratio analysis 

The company’s critical ratios show that the return on equity recovered from (28.68) percent in FY22-23 to 14.36 percent in FY23-24, while the return on capital employed recovered from (21.31) percent to 16.08 percent. The net profit margin (NPM) for fiscal year 23-24 is 2.19 percent. 

Shareholding pattern 

In the company’s recent shareholding pattern, the Promoters of the company own 61.98 percent while Retail shareholders own a 37.98 percent stake in the company and domestic Institutional Investors own a 0.05 percent stake. 

Company snapshort 

La Tim Metal & Industries Limited is an India-based company that is engaged in manufacturing and dealing with metal products. The Company is mainly in the business of trading color-coated coils and profile sheets. The Company specializes in offering end-to-end solutions, which include manufacturing metal products and others. 

Written by Abhishek Singh

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