Stock under ₹15 jumps skyrockets 20% after receiving orders from L&T for SCADA project

Synopsis:  Micro cap stock has secured a new domestic order from a leading engineering company, strengthening its position in power distribution automation and improving medium-term revenue visibility through participation in a government-backed project.

The shares of this micro-cap company majorly engaged in the business of Management Consultancy & Project Execution Services in Power sector, jumped upto 11 percent after receiving a new work order from L & T, leading to better revenue visibility.

With the market capitalization of Rs. 45 Crores, the shares of Sharika Enterprises Ltd Reached an intraday high of Rs. 11.87 per share, raising nearly 20 percent from its previous day closing of Rs. 9.94 per share. 

News

Sharika Enterprises Limited has been awarded a purchase order by Larsen & Toubro Limited for the supply of communicable Fault Passage Indicators (FPIs) for the RDSS-based SCADA project for PuVVNL located at Varanasi. The total contract value for the order stands at Rs. 9,46,80,856, which reflects an important order for the company. This project comes under the Revamped Distribution Sector Scheme (RDSS), which aims at revamping the power distribution industry in the country through automation.

The scope for the project involves the supply of communicable Fault Passage Indicators, which play an important role in the efficient detection of faults for the better reliability of power grids through SCADA-based solutions. The order has an executable timeline up to the 31st December 2026.

Financials 

Sharika Enterprises Ltd majorly engaged in the business of Management Consultancy & Project Execution Services in Power sector. Their products include VCB panels, Autosource Changeover, Kiosk types VCNs, Automatic Circuit Reclosers, Sectionalizers and many more. They also provide solutions to Solar Power Plants Wind Farm SCADA & Monitoring with services including engineering and design, EPC execution, Panel manufacturing, SCADA & Automation Integration, Renewable Energy Services, Digital Enablement & Training and Operations & Maintenance

Year on Year analysis: Revenue from operations has decreased from Rs. 21.90 Crores to Rs. 15.92 Crores, down 27.30 percent. Operating profit has turned into loss of Rs. 2.67 Crores from profit of Rs. 0.74 Crores and net profit has turned into a loss of Rs. 2.93 Crores from the profit of Rs. 0.14 Crores. 

Quarter on Quarter analysis: Revenue from operations has decreased  from Rs. 21.01 Crores to Rs. 15.92 Crores,down 24.22 percent. Operating loss has widened from loss of Rs. 2.28 Crores to Rs. 2.67 Crores and net loss has also widened from loss of Rs. 2.01 Crores to Rs. 2.93 Crores. 

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