An adhesives stock gained 5 percent on Wednesday morning after securing a Rs.55.3 lakh order from BEML for the supply of floor packing rubber. This order highlights the company’s growing presence in the industrial supply sector.
Price Movement
During Wednesday’s trading session, Srivasavi Adhesive Tapes Ltd’s share price reached an intra-day high of Rs.103.00 per share, rising 3.8 percent from its previous close of Rs.97.85 each. The shares have retreated since then and currently trading at Rs.101.95 per share.
What Happened
Srivasavi Adhesive Tapes Ltd has secured a Rs.55.42 lakh contract from BEML Limited, a Government of India Mini Ratna under the Ministry of Defence.
The contract entails the supply of floor packing rubber for the BMRCL 5RSDM Project, covering 318 cars. This domestic order is to be executed within three months, emphasizing the company’s reliability in industrial supply.
Order Book
Srivasavi Adhesive Tapes Ltd. has a tentative order book of Rs.60.15 crores for the second half of FY24-25. The order book is primarily driven by regular customers and approved projects awaiting schedules. Key segments contributing to the order book include FIBC (Rs.1100 lakhs), Automotive (Rs.900 lakhs), OEM (Rs.900 lakhs), and Renewal (Rs.800 lakhs).
Market Presence
Srivasavi Adhesive Tapes Limited has established a strong market presence, exporting to over 32 countries, including the UAE, UK, Australia, and various nations in Europe and Asia.
Within two decades, the company achieved a turnover exceeding $9 million. Notably, during the COVID-19 pandemic, Srivasavi developed seam sealing tape to support PPE kit manufacturers.
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Financial Overview
In its latest financial update, the company reported net sales of Rs.40.15 crore in Q2 FY25, reflecting a mere 1 percent increase from Rs.40.07 crore in Q2 FY24. Moreover, net profits increased 57 percent to Rs.4.31 crore, compared to Rs.2.75 crore in the same period.
Important Financial Ratios
The Return on Capital Employed (ROCE) of the company stands at 23.38 percent, while the Return on Equity (ROE) is 17.55 percent.
The company’s Price-to-Earnings (P/E) ratio is 27.11, which is lower than the industry average of 28.9. Additionally, the company maintains a stable current ratio of 2.88 and an Earnings Per Share (EPS) of Rs.3.61.
Company Profile
Srivasavi Adhesive Tapes Ltd., established in 2002, is a manufacturer and exporter of industrial specialty self-adhesive tapes and related products. Headquartered in Doddaballapura, Bengaluru, Karnataka, the company operates in the adhesive tape sector, serving both domestic and international markets.
Written by – Siddesh S Raskar
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