The shares of Spectrum Electrical Industries Ltd experienced a notable surge of approximately 9 percent, marking a significant upswing in investor sentiment. This surge follows the recent signing of a Memorandum of Understanding (MoU) for the Supply of MRI Machine components.
Investors reaped substantial returns, with the stock delivering a remarkable multibagger performance, yielding an impressive 1,392 percent return to shareholders on a Year-to-Date (YTD) basis.
Market Capitalization and Trading Session Highlights
With a robust market capitalization standing at Rs. 1,890 crores, Spectrum Electrical Industries Ltd initiated Monday’s trading session on a positive note at Rs. 1,223, a notable increase from its previous close at Rs. 1,156.40. The shares reached a high of Rs. 1,251.95, demonstrating a 9 percent gain and establishing a new 52-week high for the company.
This bullish movement in share price coincided with the company’s official disclosure in an exchange filing, announcing the formalization of an MoU with Time Medical International Venture (India) Private Limited. The MoU outlines collaboration for the development, manufacturing, and supply of MRI Machine Components.
Financial Performance Overview
Examining the company’s financial statements, there is a marginal 3 percent increase in revenue from Rs. 132 crores in H2 FY23 to Rs. 135 crores in H1 FY24. Concurrently, net profit witnessed a notable uptick, rising by approximately 17 percent from Rs. 6 crores to Rs. 7 crores during the same period.
Financial Ratios Analysis
Key financial ratios indicate a positive trend, with the Return on Equity (RoE) climbing from 9.55 percent in FY21-22 to 9.63 percent in FY22-23. Conversely, the Return on Capital Employed (RoCE) experienced a slight dip, decreasing from 11.59 percent to 10.83 percent during the corresponding period.
Shareholding Pattern
- Promoters hold a significant 74.88 percent stake.
- The Public retains a 24.56 percent share.
- Foreign Institutional Investors (FIIs) maintain the remaining 0.56 percent stake.
Corporate Background
Headquartered in Maharashtra and established in 2008, Spectrum Electrical Industries Ltd specializes in Injection Moulding, the manufacturing of Electrical Press Components, and the surface treatment of Automobile, Electrical, and Stamped parts.
