The shares of this metal product manufacturer gained up to 3.2 percent after the company signed a Memorandum of Understanding (MOU) with the Government of Maharashtra.
With a market capitalization of Rs 798.36 crore, the shares of Tembo Global Industries Ltd were trading at Rs 711.40 per share, decreasing around 3 percent as compared to the previous closing price of Rs 736 apiece.
Reason for Rise
The shares of the company have seen positive movement after Tembo Global Industries Ltd signed a Memorandum of Understanding (MOU) with the Government of Maharashtra for the establishment of a defence manufacturing facility in Maharashtra, as a part of the Government of India’s “Make in India” initiative.
Moreover, this collaboration intends to boost India’s defence manufacturing industry, improve indigenous production capabilities, and bolster the countries’ defence preparedness. The signing of the MOU in DAVOS demonstrates the strategic relevance of this collaboration as well as both sides’ belief in the venture’s potential.
Order Book
Tembo Global Industries Limited has a strong order book of Rs. 1,200+ Crores and Its products include fire-fighting, MEP, HVAC, oil and gas, drainage, anti-vibration solutions, fastener solutions, anchoring solutions, and many others.
Recent orders
Recently, the company received a new work order from a domestic client for the supply of DI Pipes for a water irrigation project for a consideration of Rs. 52.90 Crores, and it is to be executed within 12 months.
Moreover, this development further strengthens the company’s position in sectors such as oil and gas, chemicals, construction, power, shipbuilding, nuclear power, HVAC, and anti-vibration systems, as well as industrial, commercial, utility, and OEM installations.
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Financial performance
Looking forward to the company’s financial performance, revenue magnified by 50 percent from Rs 109 crore in Q2FY24 to Rs 164 crore in Q2Y25. During the same period, net profit stretched drastically by 180 percent, from Rs 5 crore to Rs 14 crore.
Ratio analysis
The company’s critical ratios show that the return on equity magnified from 14.52 percent in FY22-23 to 21.48 percent in FY23-24, while the return on capital employed increased from
23.01 percent to 31.25 percent. The net profit margin (NPM) for fiscal year 23-24 is 3.20 Percent.
Company profile
Tembo Global Industries Limited manufactures and fabricates metal components used in pipe support systems, fasteners, anchors, heating, ventilation, air conditioning (HVAC), anti-vibration systems, and equipment for industrial, commercial, utility, and OEM applications.
Written by:- Abhishek Singh
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