Stock Jumps 8% After Receiving Order Worth 3x Its Market Cap

Synopsis: SUGS Lloyd has secured a large order of nearly 3 times its market cap , boosting its order book and future revenue visibility, while strengthening its position in power infrastructure and smart grid projects. 

The shares of this micro-cap company is  majorly a technology-driven engineering and construction company specializing in renewable energy, particularly solar energy, as well as electrical transmission, distribution, and civil EPC, jumped over 8 percent after receiving large order

With the market capitalization of Rs. 256 Crores, the shares of Sugs Lloyd Ltd reached an intraday high of Rs. 114.14 per share raising over 8 percent from its previous day close of Rs. 105.21 per share is trading at a P/E of 11.1 whereas industry P/E stands at 24.2 

What is the NEWS

SUGS Lloyd Limited has received a big order from Konkan Railway Corporation Limited, valued at Rs. 639.24 crore. The order includes supply, installation, testing, and commissioning of plant systems, as well as SCADA-DMS. The project has to be completed in 24 months, which means the company has a good revenue stream assured in the coming two years. The order is a significant one for the company as it increases its order book significantly. 

The order also proves the company’s ability to execute big and complex orders. The order is also good news as it increases its presence in the power transmission and distribution segment, which is growing at a rapid rate in the country. The company already has a presence among big companies, and this order further strengthens its position in the list of companies working with the government. The company also has a strong presence in fault passage indicator technology, which has a market share of more than 50 percent.

About the company and Financials

Sugs Lloyd is a technology-driven engineering and construction company that specializes in renewable energy projects such as solar power, as well as electrical transmission, distribution, and civil EPC projects. Founded in 2009, the company has become a well-established EPC company in power transmission and distribution, solar power, and smart grids in India. Sugs Lloyd has been able to build a strong reputation through their involvement in some of the most prominent government-backed projects such as the RDSS and IPDS schemes that look to enhance power infrastructure in the country.

The company has been able to build long-term relationships with some of the most prominent players in the market, including NTPC, Tata Power, Adani Renewables, Indian Railways, and many DISCOMs across the country. Sugs Lloyd is also a market leader in Fault Passage Indicator technology with more than 50 percent market share. With their growing capabilities in power as well as renewable power segments, Sugs Lloyd is looking to build upon their position in the ever-growing Indian market.

Year on Year analysis: Revenue from operations has increased from Rs. 52.19 crores to Rs. 62.57 Crores, up 19.8 percent. Operating profit has increased from Rs. 7.89 Crores to Rs. 9.29 Crores, up 17.7 percent and Net profit has increased from Rs. 5 Crores to Rs. 6.11 Crores, up 22 percent 

Quarter on Quarter analysis: Revenue from operations has decreased from Rs. 63.62 Crores to Rs. 62.57 Crores, down 1.6 percent. Operating profit has decreased from Rs. 9.97 Crores to Rs. 9.29 Crores, down 6.8 percent and net profit has increased from Rs. 6.04 Crores to Rs. 6.11 Crores up 1.15 percent. 

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