Stock under ₹15 jumps after receiving order worth over ₹9 Cr From Dubai based Co.

A micro-cap stock priced under Rs.15 saw a 2 percent rise after securing an export order worth over Rs.9 crore from a Dubai-based company. Additionally, the company announced a strategic partnership for the supply of garments to be sold in retail stores in Dubai, further boosting investor confidence.

Price Variation 

During Monday’s trading session, SBC Exports Ltd’s shares rose to an intra-day high of Rs.12.75 per share, rising 2.3 percent from its previous closing price of Rs.12.47 apiece. The share price has retreated slightly since then and is currently trading at Rs.12.72 per share.  Over the past five years, the shares have delivered over 150 percent returns.

Contract Specifications 

SBC Exports Limited has secured a repeat export order worth approximately US $10.89 million (INR 9.36 crores) for the supply of various garment articles, including T-shirts, trousers, and shorts, from M/s GAWGEE BROTHERS WHOLESALERS CO. LLC, a Dubai-based textile company. This order marks a continued partnership between the two companies and further strengthens SBC Exports’ international presence in the garment export industry.

The significant terms and conditions of the awarded order(s)/contract(s) include that payment for the shipment will be received within 90 days from the date M/s Gawgee Brothers Wholesalers Co. LLC acknowledges receipt of the goods. The minimum shipment size will be 20,000 pieces per order, with all payments to be made in US Dollars. The order(s)/contract(s) are to be executed within one year from the date of the purchase order, which is set for completion by 23.03.2025.

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Strategic Partnership

Additionally, SBC Exports has entered into a strategic tie-up with GAWGEE BROTHERS WHOLESALERS CO. LLC, UAE, to supply a wide range of garments for sale in the retail chain stores, “Day-to-Day,” in Dubai. This partnership is expected to enhance SBC Exports’ market reach in the UAE and provide consistent business growth through its expanded supply of garments to a prominent retail network.

Earnings Report

According to its recent financial updates, SBC Exports Ltd reported remarkable consolidated revenue of Rs.50.02 crores in Q3 FY25, marking a 5 percent increase from Rs.47.81 crores in Q3 FY24. Similarly, the company saw a 15 percent in net profit to Rs.3.27 crores, compared to Rs.2.84 crores in the same period. 

Ratio Analysis

The company has a Return on Capital Employed (ROCE) of 24.08 percent and a Return on Equity (ROE) of 30.17 percent. Its Price-to-Earnings (P/E) ratio stands at 33.68, higher than the industry average of 24.33. Furthermore, the company maintains a current ratio of 1.43, a debt-to-equity ratio of 0.77, and an Earnings Per Share (EPS) of Rs.0.37. 

Written by – Siddesh S Raskar

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