Microcap stock in focus after receiving ₹22 Cr order from Bhilai Engineering Corporation

Synopsis:
Simplex Castings Ltd., a micro-cap engineering solutions provider, was in focus after receiving a major domestic order worth Rs. 22.37 crore from Bhilai Engineering Corporation.

A Micro-cap company engaged in the business of manufacturing of castings and engineering solutions was in the spotlight in the day’s trade after receiving a new domestic work order worth Rs. 22.37 crore. 

With the market capitalization of Rs. 265 crore, the shares of Simplex Castings Ltd were trading at Rs. 368, down by 2 percent from its previous day’s close price of Rs. 375.75  per equity share. 

Work Order

Simplex Castings Ltd., a leading provider of castings and engineering solutions, has secured an order worth Rs. 22.37 crore from Bhilai Engineering Corporation Limited to supply over 500 heavy fabricated components, including door bodies, frames, and flash plates.

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About the Company & Others

A well-known Indian manufacturer with a global reach, Simplex Castings Ltd. provides complete engineering solutions, including forgings, castings, fabrication, machining, assembly, and equipment building. In Bhilai and Rajnandgaon, Chhattisgarh, it has advanced foundries, fabrication plants, CNC machining units, design centers, and an EPC division for turnkey projects.

With more than 800 employees, Simplex Castings Ltd. has a diverse workforce that is skilled to tackle any challenge in its industry. The company has an annual production capacity of 21,000 MT, with its fabrication division producing an additional 15,000 MT.

The company’s revenue for FY2024–2025 increased by 40.98 percent year over year from 122 crore to Rs. 172 crore. Net profit saw a sharp incline of 650 percent, from Rs. 2 crore to Rs. 15 crore. 

At the moment, the company’s P/E ratio is 17.5x lower as compared to its industry P/E 30.5x, and its ROE and ROCE are 33.7 percent and 24.1 percent, respectively, showing companies financial performance, whereas the D/E ratio of the company stands at 1.36.

Written by Akshay Sanghavi

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