Surya Roshni Wins Orders Worth ₹171.16 Crore from BPCL and HPCL

Surya Roshni, a lighting and steel pipe manufacturer, faced a 3% drop in shares despite positive news. It secured orders worth ₹171.16 crore, including a ₹163 crore contract from BPCL for a major gas distribution project. The company's board approved a ₹40 crore investment to boost capacity, and it reported a two-fold rise in net profit for Q1. Despite these achievements, shares fell 3%, but management remains optimistic about the business environment. A stock split was announced to improve market liquidity and attract small investors.

BPCL & HPCL Give Orders To Surya Roshni

Surya Roshni, a prominent lighting manufacturer and steel pipe producer, witnessed a nearly 3% decline in its shares during early trade on August 14, despite several positive developments. The company recently secured orders worth ₹171.16 crore, displaying its continued growth trajectory. These orders include a substantial ₹163 crore contract from BPCL for a comprehensive City Gas Distribution (CGD) project spanning across India and to be executed within 16 weeks. Another contract, valued at ₹8.16 crore, was awarded by HPCL for the supply of 3LPE coated line pipes for a CGD project in West Bengal, with an execution period of 12 weeks.

In addition to these order wins, Surya Roshni's board of directors granted approval for a significant investment of ₹40 crore. This investment is aimed at upgrading and modifying the cold rolling (CR) plant located at the Bahadurgarh Plant in Haryana. The proposed enhancements are projected to increase the plant's capacity by an impressive 35,000 metric tons per annum by the end of July 2024.

Surya Roshni Q1 Results:

Financially, Surya Roshni reported robust performance for the June quarter, boasting a remarkable two-fold increase in consolidated net profit, which soared to ₹59.13 crore. This substantial growth can be attributed, in part, to the company's successful reduction of finance costs. In comparison, the net profit for the same quarter in the previous year was reported at ₹22.24 crore. Moreover, the company's revenue from operations also witnessed a 2% rise, reaching ₹1,875.27 crore, compared to ₹1,839.89 crore recorded last year.

Despite the positive strides in various segments, the company's shares experienced a 2.83% drop, closing at ₹765.70 apiece on the Bombay Stock Exchange (BSE). The management remains optimistic, citing the prevailing favorable business environment in both business-to-business (B2B) and business-to-consumer (B2C) categories as contributors to the overall growth.

To enhance market liquidity, expand the shareholder base, and enable greater accessibility to small investors, Surya Roshni's board of directors announced a stock split in the ratio of 1:2. This strategic move is expected to fortify the company's position in the capital market.

Over the recent past, Surya Roshni's stock performance has been a blend of ups and downs. While it registered a decline of 4.54% in the last week, it demonstrated an impressive gain of 16% over the preceding six months. Over a one-year period, the stock delivered remarkable returns of 116%, reflecting its robust performance. Moreover, the company has sustained positive returns of 373.18% and 136.75% over three and five years, respectively.

Surya Roshni's stock price has witnessed fluctuations, with a 52-week high of ₹934.75 per share and a 52-week low of Rs 336.05 per share. As of now, the stock holds a market capitalization of Rs 4,276.27 crore, indicative of its significant presence in the market.