Shah Metacorp Ltd, incorporated in 1999, is a micro-cap manufacturer and supplier of a diverse range of stainless steel products, specializing in the production, export, and supply of stainless-steel long products, including bars and mild steel items. The company has achieved remarkable success, delivering an impressive return of approximately 100% to its shareholders over the past year.
Recently, Shah Metacorp’s shares have been hitting the upper circuit for two consecutive days following the release of its stellar Q2FY25 performance. For the quarter ending September 2024, the company reported a revenue of Rs 48.54 crore, representing a substantial growth of 128% year-on-year, up from Rs 21.33 crore. The operating profit rose to Rs 2.74 crore compared to Rs 0.59 crore in the same quarter last year, resulting in a margin of about 5.64%, up from 2.77%. The net profit also saw a significant improvement, reaching Rs 2.47 crore, up from Rs 0.76 crore.
In terms of annual performance, Shah Metacorp generated a total revenue of Rs 97 crore in FY24, with an operating profit of Rs 4 crore and a net profit of Rs 4 crore, doubling from Rs 2 crore in FY23.
On the trading front, shares of Shah Metacorp opened at Rs 5.49 today, slightly higher than the previous day’s closing price of Rs 5.23 on the BSE. The stock rallied around 5%, hitting the upper circuit for the second consecutive day, and ultimately closed at Rs 5.47. The company currently holds a market capitalization of Rs 270.66 crore and has provided shareholders with a return of about 95% over the past year.
Additionally, Shah Metacorp has made significant strides in reducing its debt, decreasing it from Rs 37 crore to Rs 6 crore as of September 2024. This debt reduction, combined with strong financial performance, has likely bolstered investor confidence in the company.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Investing in stocks carries inherent risks, and past performance is not indicative of future results. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The author does not assume any liability for any losses or damages arising from the use of this information.
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