The shares of this small-cap metal stock engaged in the processing and production of minerals and metals surged over 9 percent intraday on Wednesday after the company reported a remarkable 257 percent YoY increase in net profits and strong revenue growth in its recent half-yearly results.
Share Price Movement
The share price of Owais Metal and Mineral Processing Ltd opened at Rs. 1,497 and touched a high of Rs.1,530 per share on Wednesday’s morning trade, rising 8.90 percent from its previous close of Rs.1,404.95 per share. However, the shares have adjusted since then and are now trading at Rs.1,414.75 each.
What Happened
Such a bullish movement in the scrip price was due to the result of the company’s significant increase in revenue and net profits in the half year.
According to its recent filing, at the half year ended September 2024, Owais Metal and Mineral Processing Ltd reported a 250 percent increase in revenue to Rs.105 crore in H1 FY25, compared to Rs.30 crore in H1 FY24. Furthermore, on a half-yearly basis, the company saw an increase of 110 percent in revenue from Rs.50 crore in H2 FY24.
In the same period, the company reported a significant increase in net profit of 257 percent to Rs.25 crore in H1 FY25, up from Rs.7 crore H1 FY24 and 177 percent from Rs.9 crore in H2 FY24.
In terms of return ratios, return on capital employed (ROCE) is currently at 52.1 percent, while return on equity (ROE) is at 44.9 percent. The company has a strong current ratio of 5.61 and a debt-to-equity ratio of 0.24.
Also read….
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a major share of 73.01 percent stake in Owais Metal and Mineral Processing, Foreign Institutional Investors (FII) holding around 0.49 percent, Domestic Institutional investors (DII) standing at 0.90 percent, and public holdings standing at 25.60 percent.
About the company
Owais Metal and Mineral Processing Limited, established in 2022, specializes in manufacturing and processing a variety of metals and minerals. The company focuses on products such as Manganese Oxide, MC Ferro Manganese, and Wood Charcoal, serving industries like fertilizers, steel, and casting.
Owais operates a manufacturing facility in Madhya Pradesh and emphasizes strong client relationships for repeat business. Their business model revolves around producing high-quality materials while investing in technology to improve operational efficiency and adapt to market demands. They position themselves as a key player in the natural resources sector.
Written by – Santhosh S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in 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. Dailyraven Technologies 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.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
