Shares of this microcap company clocked 10 percent Upper Circuit after receiving an order 3 times bigger than its current market capitalization. The shares have delivered a multibagger return of 738 percent to its shareholders in one year.
With a market capitalization of Rs. 246 crores, the share of Dynamic Services & Security Ltd started Friday’s trading session on a higher note at Rs. 164 compared to its previous close of Rs. 162.70. During the trading session, the shares clocked 10 percent upper circuit at Rs. 178.95, which also marked has 52-week high.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had received a very prestigious order from the Office of the Nacof Oorja Pvt Ltd (NOPL) for 150 MW Solar PV projects spread in multiple locations each in the sizes between 3 MW to 10 MW in different districts of the state Maharashtra.
Further, the scope of work is to design and engineer, supply, construction, testing and commissioning of Grid Interactive PV Solar Power Generation Plant, including approach road, land development, In-house Switchyard, 11KV transmission line with RoW, Evacuation bay at 33/11 kV MSEDCL’s Sub-station identified near-by. The Land parcels shall be free-issued by NOPL to EPC.
Moreover, the contract value is approx. 725 crores and it will conclude in 18 Months. The received order is three times larger than its current market capitalization.
Coming onto the company’s financial statement, the revenue increased marginally by 1.3 percent from Rs. 72 crores during FY21-22 to Rs. 73 crores in FY22-23. In addition, the net profits magnified from Rs. 2 crores to Rs. 10 crores during the same period.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 4.74 percent during FY 21-22 to 17.52 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 10.23 percent to 24.58 percent during the same timeframe. Furthermore, the net profit margin increased from 3.02 percent during FY21-22 to 13.23 percent during FY22-23.
As per the latest shareholding pattern, the Promoters maintain a majority stake of 64.99 percent in the company, while Retail investors hold 34.99 percent of the shares. The remaining 0.01 percent of stakes are held by the DIIs.
Headquartered in Kolkata, Dynamic Services and Security was incorporated in 2016. The company provides Mechanized Cleaning, Conservancy, Housekeeping, and Catering. They also provide Security Guarding and Manpower Solutions to government agencies like the Indian Army, Indian Navy, Indian Air Force, Indian Railways and Webel Technology Limited.
Written By Vaibhav Patil
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