Stock hits 5% upper circuit after receiving orders up to ₹300 Cr for supply of Artillery Shells

During Friday’s trading session, the shares of a company engaged in the engineering and mould base industry and a player in the defence manufacturing sector hit a 5 percent upper circuit on BSE, after securing an order of up to Rs. 300 crores from a prominent defence supplier based in the Far East.

Price Movement

With a market cap of Rs. 1,038.6 crores, the shares of Sunita Tools Limited hit a 5 percent upper circuit at Rs. 964.95, as against its previous closing price of Rs. 919.The stock has delivered multibagger returns of nearly 256 percent over a one-year period, while around 19 percent of positive returns in the last one month.

What’s the news

As per the latest regulatory filings with the BSE, Sunita Tools Limited has received a Major Letter of Intent (LOI) for the supply of 155mm M107 Empty Artillery Shells. The order includes the delivery of 1 lakh pieces, with supply set to begin at a rate of 7,500 pieces per month until until the order is completed.

The LOI has been issued by a prominent defence supplier from a neutral and friendly country in the Far East, with the Ministry of Defence (MOD) of that country directly issuing the End-User Certificate (EUC) to Sunita Tools Limited.

An advance payment to secure the manufacturing volumes for this order is expected shortly, and the company is committed to completing the order within 14 months.

NOTE – The Large orders are valued between Rs. 1 – 100 crore, Major orders are those valued between Rs. 200-300 crore, and Mega orders are valued between Rs. 300-500 crore.

Also read: Stock skyrockets 16% after receiving 20-year US patent for its Cross Sealing Device

Previous Updates

20th March: Sunita Tools Limited signed an International Cooperation Agreement (ICA)/MoU with PIM Limited, an Israeli defence company regulated by the Israel Ministry of Defence.

The key objectives of the ICA/MoU include: sourcing TOT, royalty deals, joint ventures (JV), buyouts in defence and aerospace, securing new orders for products manufactured by Sunita Group, facilitating cooperation between buyers and sellers of defence items in their network, and addressing any other defence, paramilitary, and aerospace-related needs.

PIM Limited is directly related to product categories including air defence, armament, anti-tank systems, body armour and helmets, land systems, armoured boats, ammunition, artillery and missile systems, and drone systems.

Financials

Sunita Tools reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 79.3 percent, increasing from Rs. 8.55 crores in H1 FY24 to Rs. 15.33 crores in H1 FY25. Similarly, during the same period, the company’s net profit increased from Rs. 1.6 crores to Rs. 3.4 crores, representing a rise of around 112.5 percent YoY.

About the company

Sunita Tools Limited is engaged in the business of engineering and mould base industry. It manufactures ground plates, mould bases, and precision CNC machining. The company’s products serve as essential components for the manufacturing industries, spanning automotive, pharmaceutical, electronics, consumer goods, aerospace and numerous other sectors. 

Written by Shivani Singh

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Stock hits 5% upper circuit after receiving orders up to ₹300 Cr for supply of Artillery Shells appeared first on Trade Brains.