Microcap stock jumps after receiving order from Ministry of Defence through Mazagon Dock Shipbuilders

Synopsis:
Simplex Castings Limited secured a ₹4.30 crore MoD order from Mazagon Dock Shipbuilders to supply high-precision propulsion castings for six vessels.

This Microcap stock, engaged in manufacturing heavy engineering castings and components in grey iron, ductile iron, steel and alloy steel for core industrial sectors in India and overseas, jumped 2 percent after receiving an order from Mazagon Dock Shipbuilders Limited

With a market capitalization of Rs. 410.09 crores, the share of Simplex Castings Limited has reached an intraday high of Rs. 547.75 per equity share, rising nearly 2 percent from its previous day’s close price of Rs. 537. Since then, the stock has retreated and is currently trading at Rs. 527.50 per equity share. 

What is the News?

Simplex Castings Limited has received an important order from the Ministry of Defence through Mazagon Dock Shipbuilders. Under this project, the company will manufacture and supply key propulsion-system castings for six 7,500 DWT vessels. 

The order is valued worth Rs. 4.30 crore and will be completed within 6–8 months. These components require high-precision workmanship and strict naval standards, showcasing Simplex Castings’ strong expertise in specialised defence castings and marking a major step forward in its defence manufacturing portfolio.

Company Overview

Simplex Castings Limited was established in 1970 and is part of the Simplex Group. The company is engaged in manufacturing heavy engineering castings in grey iron, ductile iron, steel, and alloy steel, along with machined components, fabricated structures, and equipment for core industries like steel, power, railways, mining, cement, defence, oil & gas, and valves.​

The company’s products include castings up to 70 MT, heavy fabrications, CNC-machined parts, turnkey EPC projects, and import-substitution items such as coke oven doors, bogies for railways, and ballistic-grade castings.​

Simplex operates manufacturing plants in Bhilai and Tedesara, Chhattisgarh, with a global presence serving clients in 21 countries across five continents through direct sales, agents, and a Singapore subsidiary.

Recent quarter results

Coming into financial highlights, Simplex Castings Limited’s revenue has increased from Rs. 29.38 crore in Q2 FY25 to Rs. 55.41 crore in Q2 FY26, which has grown by 88.60 percent. The net profit has also grown by 53.30 percent from Rs. 3.64 crore in Q2 FY25 to Rs. 5.58 crore in Q2 FY26. Simplex Castings Limited’s revenue and net profit have grown at a CAGR of 23.19 percent and 95.74 percent, respectively, over the last three years.

In terms of return ratios, the company’s ROCE and ROE stand at 24.1 percent and 33.7 percent, respectively. Simplex Castings Limited has an earnings per share (EPS) of Rs. 27.5, and its debt-to-equity ratio is 0.81x.

Written By – Nikhil Naik

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