During Tuesday’s trading session, the shares of one of the largest manufacturers of LV and MV switchgear in India surged by nearly 2.7 percent to Rs. 236 on NSE.
Stock Performance:
With a market cap of Rs. 3,227.2 crores, at 10:22 a.m., the shares of Marine Electricals (India) were trading in the green at Rs. 233.95, up by nearly 1.8 percent, as against its previous closing price of Rs. 229.76.
The stock has delivered multibagger returns of nearly 150.4 percent in one year, as well as around 129 percent returns in the last six months. So far in 2024, the shares of Marine Electricals have given multibagger returns of about 126.4 percent
Business Verticals & Clientele:
Marine Electricals operates across four key business verticals: Defence & Marine Solutions, Industry Solutions, Vessel Traffic Management Systems (VTMS), and Electric Vehicle (EV) Charging Solutions.
Defence & Marine Solutions: In the marine business, the company holds a leadership position, with ~50% market share in the electrical segment.
It is a Tier-I electrical supplier and is listed on the Approved List of Vendors with the Indian Navy, as well as with both Indian and global shipyards.
The company offers a wide range of commercial and transport services, including engineering and consultancy, electrical installations, commissioning, spare parts supply, and more.
Key customers in the marine sector include prominent entities such as Cochin Shipyard, Mazagon Dock, Hindustan Shipyard, Bangladesh Navy, Titagarh, ONGC, Colombo Dockyard, and amongst others.
Industry Solutions: Marine Electricals has been providing turnkey automation, electrical, EMS, and IBMS to diverse industries since 2004. Notable clients in this segment include CEAT, Adani Wilmar, Suzlon, Nestle, Cummins, Chennai Metro Rail Limited, and more.
Vessel Traffic Management Systems: The company has held a majority stake in Xanatos Marine since 2023, aiming to provide indigenous solutions to meet the demands of the vast Indian Coast.
EV Charging Solutions segment: The company addresses every aspect of the EV ecosystem. This includes in-house hardware and software development, complete turnkey solutions for end-to-end project management, a full range of AC & DC fast chargers, OCPP compliance, and customized offerings for commercial, residential, and public spaces, with a pan-India service network.
Through its subsidiary, Evigo Charge Pvt. Ltd., the company provides EV charging infrastructure and charging management software.
The company has a “Bijlify” app, a front-runner in the mobility sector, driving the transformation of sustainable energy technology and EVs. The app plays a key role in the development of EV charging infrastructure for various vehicle segments, including 2-3-4 wheelers, and buses.
Future Outlook:
The company aims to expand its capabilities in IPMS for the Navy, complete installation packages for naval batteries and battery management systems, as well as in shock-graded alternators and permanent magnets.
Marine Electricals is also broadening its offerings in the Industry vertical by venturing into integrated powering solutions for data centres, commercial sectors, industries, and infrastructure. Additionally, it plans to expand its product offerings for the data centre segments.
Further, the company is looking to enter the remote service solutions market for the maritime industry, with plans to secure a Service Contract for weapon systems. It is also targeting expansion into VTMS and offshore solutions.
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Financials:
Marine Electricals reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 34.3 percent, rising from Rs. 137 crores in Q2 FY24 to Rs. 184 crores in Q2 FY25.
Similarly, during the same period, the company’s net profit increased from Rs. 5 crores to Rs. 13 crores, representing a rise of around 160 percent YoY.
The company was initially listed on the SME platform named EMERGE of the NSE on 11th October 2018, and was later migrated to the NSE main board with effect from 2nd December 2020.
Key Financial Ratios:
In terms of key financial metrics, Marine Electricals has a Return on Equity (RoE) of 11.2 percent and a return on capital employed (RoCE) of 15.4 percent. Additionally, the company’s debt-to-equity ratio stands at 0.23.
About the company:
Established in 1978, Marine Electricals (India) Limited is engaged in the business of manufacturing and sale of all types of marine and industrial electrical & electronic components like switchgear, control-gears etc. and is also engaged in the renewable energy sector specifically solar.
The company also provides services like designing, fabricating etc. for all types of electrical & electronic installations in India and abroad and undertakes annual maintenance contracts.
Marine Electricals is an integrated technical services provider in the fields of electrical automation, power electronics, information and communication technology solutions.
It manufactures and installs a complete range of slow and fast EV Chargers from 3.3 KW to 240 KW in addition to providing its in-house App Bijlify and charge point management system.
Written by Shivani Singh
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