Indobell Insulations Stock Soars 5% After Cochin Shipyard Order

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.

Disclaimer

The views and investment tips expressed by experts 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. We are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

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ITI Stock Jumps 5% on ₹64 Cr Wi-Fi & Security Order: Analysis & Financials

ITI Ltd Stock Rises After Securing ₹64 Cr in New Orders

The shares of the public sector undertaking, ITI Ltd, experienced a surge of up to 5 percent after the company announced a significant new work order for an Integrated Security System and other projects, totaling ₹64 crore.

Despite this positive news, the stock was trading at ₹400.25 per share, reflecting a decrease of around 5 percent compared to the previous closing price of ₹421.30. The company currently has a market capitalization of ₹38,459.50 crore.

Reason for Stock Increase

The positive movement in ITI Ltd's stock price follows the announcement of two significant contract wins: a ₹35 crore contract for Wi-Fi and LAN setup at Sambalpur University, Odisha, covering 80 locations, and a ₹29.14 crore contract for an Integrated Security System for Central Railways, Mumbai. This latter project involves installing 1400 cameras across six stations, enhancing connectivity and safety measures.

Financial Condition

While analyzing the company’s financial performance, it's clear that the revenue has significantly improved, jumping by 231 percent from ₹157 crore in Q2FY24 to ₹520 crore in Q2FY25. However, despite the improved revenue, the net loss has only slightly decreased from ₹103 crore to ₹91 crore during the same period.

Recent Orders

In addition to the contracts above, ITI Limited also recently secured an order from the Bihar Renewable Energy Development Authority (BREDA) for the supply and installation of 1,00,000 Solar Street Light Systems to the Bihar State Government, valued at ₹300 crore.

Ratio Analysis

The company's critical financial ratios reveal some challenges. The Return on Equity (ROE) decreased from (15.87) percent in FY22-23 to (31.88) percent in FY23-24. Similarly, the Return on Capital Employed (ROCE) fell from (5.18) percent to (14.94) percent. The Net Profit Margin (NPM) for fiscal year 22-23 is (45.03) percent.

Shareholding Pattern

The company’s recent shareholding structure shows that the Promoters hold 90.00 percent of the shares. Retail shareholders own 2.02 percent, and Foreign Institutional Investors own a small stake of 0.03 percent.

Company Profile

ITI Limited is a company involved in the manufacturing, trading, and servicing of telecommunication equipment and associated services. It produces various telecom products, including electronic switching exchanges, transmission equipment, microelectronics, and telephone instruments.

Disclaimer

The views and investment tips expressed on this website are those of the respective experts and not those of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise caution while investing or trading in stocks. Neither the website nor the author are liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

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Rockingdeals Circular Economy: Smallcap Stock with Potential 900% Revenue Growth by FY27

Rockingdeals Circular Economy: A Smallcap Stock to Watch

A leading refurbished and excess inventory management company, Rockingdeals Circular Economy Limited, is aiming for substantial growth with revenue targets of INR 400-500 crore by fiscal year 2027. The company anticipates profit after tax margins of 10-15%, solidifying its position within India's circular economy sector.

Share Price Movement

On Monday, the share price of Rockingdeals Circular Economy Limited experienced a dip of 2.37 percent, closing at Rs. 589.95 per share. This was a slight decrease from its previous close of Rs. 591.85 per share. As of January 14, 2025, the company’s market capitalization stands at approximately Rs. 333 crore.

What's Driving Growth?

The company has projected an impressive 80-100% growth in Profit After Tax (PAT) for FY25. This optimism is supported by the expansion of its operations through new store openings, a partnership with Livpure, and the successful integration of franchise and retail operations. Rockingdeals has ambitious plans for 4QFY25, including the opening of 3+ franchise stores, expanding its reach in the East Zone, and launching operations in Dubai.

Furthermore, the company is working towards obtaining an e-waste recycling license by the end of FY25. A recent preferential issue received positive investor interest, providing a boost to future growth initiatives. With an eye on the future, RDCEL aims to reach INR 400-500 crore in revenue by FY27, targeting a PAT margin of 10-15%.

Financial Highlights

Remarkable Growth in 2024

Rockingdeals Circular Economy demonstrated exceptional financial performance in 2024. Revenue surged to Rs. 49.56 Cr, a 230% increase from Rs. 15.01 Cr in 2023. Simultaneously, profit experienced a 238% jump, increasing from Rs. 1.54 Cr in 2023 to Rs. 5.21 Cr in 2024.

Consistent Performance Over Time

The company has shown consistent and strong performance over various timeframes. Trailing twelve months (TTM) sales growth stands at 230%, with profit growth at 238%. Looking at a 3-year horizon, they’ve achieved 67% sales growth and a remarkable 374% profit growth.

Strong Return on Equity (ROE)

Return on Equity (ROE) metrics are highly encouraging with 75% in the last year and 37% over a 3-year period. These figures indicate that the company is growing rapidly and is also generating strong returns for its shareholders.

Price-to-Earnings (P/E) Ratio

The average price-to-earnings (P/E) ratio within the trading industry is 33.68. Rockingdeals Circular Economy’s current P/E ratio is higher, standing at 48.82.

Market Outlook

India’s retail industry is displaying strong growth, propelled by rising consumer purchasing power and increasing demand. The expansion of the retail sector is evident, with around 60 new shopping malls opening between 2023–25. The sector contributes more than 10% to India’s GDP. Innovation in financing solutions, like easy credit options, are helping consumers gain access to durable goods.

Although e-commerce funding saw a reduction in 2023, global investors continue to show interest in India’s retail sector, indicating a promising future. India remains the fourth largest retail market in the world, offering abundant growth opportunities.

Shareholding Pattern

As per the shareholding pattern recorded in September 2024, the promoters hold a significant 65 percent of Rockingdeals Circular Economy Limited. Foreign institutional investors own a minimal 0.03 percent, while the public holds 34.79 percent.

About the Company

Founded in 2002, Rockingdeals Circular Economy Limited specializes in the bulk trading of excess inventory and re-commerce items, emphasizing sustainable practices through the reuse and recycling of products. The company offers a broad selection of discounted products, spanning electronics, fashion, and lifestyle goods, from well-known brands like Zara, Nike, and Reebok. Rockingdeals is a prominent participant in India’s re-commerce market.

Disclaimer

The views and investment tips expressed on this website are for informational purposes only. Investing in equities carries the risk of financial losses. Investors must exercise caution when making investment decisions. The author and publisher are not liable for any losses incurred as a result of decisions based on this article. It is advisable to consult with a qualified investment advisor before making any investment.

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Tembo Global Industries Stock Soars 3% on Maharashtra Defense Manufacturing Deal

Tembo Global Industries Stock Jumps After Defense Manufacturing Agreement

The shares of this metal product manufacturer saw a gain of up to 3.2 percent following the announcement of a Memorandum of Understanding (MOU) with the Government of Maharashtra.

Despite this positive news, with a market capitalization of Rs 798.36 crore, Tembo Global Industries Ltd shares were trading at Rs 711.40, down by approximately 3 percent compared to the previous closing price of Rs 736.

Reason for the Stock Increase

The positive movement in the company's shares can be attributed to Tembo Global Industries Ltd signing an MOU with the Government of Maharashtra to establish a defense manufacturing facility in the state. This initiative aligns with the Indian government’s “Make in India” program.

This collaboration is expected to significantly enhance India's defense manufacturing sector, boost domestic production capabilities, and strengthen the country’s overall defense readiness. The signing of the MOU in Davos highlights the strategic importance of this partnership and the confidence both parties have in the project's potential.

Order Book Strength

Tembo Global Industries Limited boasts a substantial order book exceeding Rs. 1,200 Crores. The company's diverse product range includes solutions for fire-fighting, MEP, HVAC, oil and gas, drainage, anti-vibration, fasteners, and anchoring, among others.

Recent Order Acquisition

The company recently secured a new work order from a domestic client for the supply of DI Pipes for a water irrigation project, amounting to Rs. 52.90 Crores. This project is expected to be completed within 12 months.

This recent order further solidifies the company's position across various sectors, including oil and gas, chemicals, construction, power, shipbuilding, nuclear power, HVAC, and anti-vibration systems, as well as industrial, commercial, utility, and OEM installations.

Financial Performance Overview

Revenue Growth

The company's financial performance is robust, with revenue increasing by 50 percent from Rs 109 crore in Q2FY24 to Rs 164 crore in Q2Y25.

Net Profit Surge

During the same period, net profit saw a significant jump of 180 percent, rising from Rs 5 crore to Rs 14 crore.

Key Ratio Analysis

Return on Equity and Capital Employed

The company’s key ratios show positive trends. The return on equity rose from 14.52 percent in FY22-23 to 21.48 percent in FY23-24. The return on capital employed also saw an increase, moving from 23.01 percent to 31.25 percent.

Net Profit Margin

The net profit margin (NPM) for the fiscal year 23-24 stands at 3.20 Percent.

Company Profile

Tembo Global Industries Limited is engaged in the manufacturing and fabrication of metal components utilized in pipe support systems, fasteners, anchors, heating, ventilation, air conditioning (HVAC), anti-vibration systems, and other equipment. These products serve various industrial, commercial, utility, and OEM applications.

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies 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. 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.

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Top Stock Picks: 44% Upside Potential with Aditya Birla Capital & Hyundai Motor India

Top Stock Picks with Potential Upside: Aditya Birla Capital and Hyundai Motor India

Indian benchmark indices experienced a downturn on January 13th, with the Nifty closing around 23,085.95. The Sensex ended down 1,048 points, a 1.36% decrease, settling at 76,330.01. Similarly, the Nifty fell by 345 points, a 1.47% decline, closing at 23,085.95.

Stocks to Watch with Potential Gains

Despite the market dip, several stocks show promising upside potential. Let's examine two such companies with 'Buy' recommendations from well-known brokerages:

1. Aditya Birla Capital Ltd

Aditya Birla Capital Limited operates across diverse financial services, including lending (both as an NBFC and a housing finance institution), life and health insurance, asset management, general insurance, and stock broking.

With a market capitalization of Rs 44,949.21 crore, shares of Aditya Birla Capital Ltd were trading at Rs 172.45, a 1.62% increase compared to the previous closing price.

Morgan Stanley, a global brokerage, issued a ‘Buy’ recommendation for this fintech stock, setting a target price of Rs 247 per share. This suggests a potential 44% upside from the current price of Rs 172.

Morgan Stanley analysts highlighted AB Capital’s strong asset quality management. They anticipate a 20% Compound Annual Growth Rate (CAGR) in assets under management (AUM) from fiscal year 2024 to 2027. Additionally, they project an 18% CAGR in earnings per share (EPS), which is expected to drive the return on equity (RoE) above 15% by fiscal year 2027 for its NBFC division.

2. Hyundai Motor India Ltd

Hyundai Motor India Limited stands as the world's third-largest auto original equipment manufacturer (OEM) by passenger car sales. The company manufactures and sells dependable and technologically innovative four-wheeler passenger vehicles. The firm is also involved in the production of components like gearboxes and engines.

With a market capitalization of Rs 1.45 lakh crore, the shares were trading at Rs 1,790.90, a 1.32% increase compared to the previous closing price.

HSBC, another prominent global brokerage, has assigned a 'Buy' rating to this automobile stock, with a target price of Rs 2,200 per share. This indicates a potential 23% upside from Tuesday's price of Rs 1,791 per share.

HSBC emphasizes the company’s strong position for long-term growth within India's auto sector. They anticipate new product launches and capacity expansion to fuel growth over the next 2–3 years. They also foresee stable margins, although they acknowledge the risk posed by potentially weaker model launches.

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies 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. The author is not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

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