Indobell Insulations Stock Rockets After Cochin Shipyard Deal
Shares of a leading insulation manufacturer hit the 5 percent upper circuit, reaching Rs 96.35 per share, following a major work order from Cochin Shipyard Limited worth Rs 11.04 crore.
With a market capitalization of Rs 60.70 crore, Indobell Insulations Ltd saw its shares trade at Rs 96.35, reflecting a nearly 5 percent increase compared to the previous closing price of Rs 91.77.
Reason for the Stock Surge
The positive movement in the company's stock is attributed to Indobell Insulations Ltd securing a substantial work order from Cochin Shipyard Limited. This order entails the supply and application of hot lagging, with a total value of Rs 11.04 crore.
Financial Performance
Examining the company's financials, revenue experienced a notable increase of 231 percent, from Rs 20.77 crore in FY22-23 to Rs 17.82 crore in FY23 – 24. Simultaneously, net profit saw a 14 percent rise, growing from Rs 0.90 crore to Rs 1.03 crore.
In FY24, the revenue was generated from Manufacturing (61.23%, encompassing mineral fiber nodules at 19.56%, ceramic fiber nodules at 9.33%, and prefabricated insulation jackets at 32.34%), Trading (24.45%, including LRB mattresses, ceramic fiber blankets, and aluminum sheets), and Services (14.32%), demonstrating a varied operational profile.
Geographical Footprint
The company generated 66.29% of its FY24 revenue domestically, primarily from Tamil Nadu, Uttarakhand, and West Bengal. The remaining 33.71% comes from exports to key markets like Switzerland, the USA, Taiwan, Germany, and South Korea.
Manufacturing Capabilities
Indobell operates strategically located manufacturing facilities in West Bengal and Maharashtra. The West Bengal facility focuses on the production of nodulated wool and processing of bulk fibers through various stages including slicing, slitting, and surface rotation.
These facilities feature integrated in-house processes, ensuring the entire production cycle is completed internally, enabling efficiency and strong quality control.
Product Line
Indobell's offerings include mineral and ceramic fiber nodules for insulation, as well as prefabricated thermal insulation jackets for improved energy efficiency. Their services encompass thermal insulation application, supervision, material supply for projects, and engineering and consultancy support.
Company Overview
Indobell Insulations Limited is a manufacturer and contractor specializing in insulation products such as nodulated and granulated wool, including mineral and ceramic fiber nodules, and prefabricated thermal insulation jackets. These products serve various insulation applications in residential, commercial, and industrial sectors.
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