Latteys Industries stock jumps after receiving orders worth more than its market cap from MSEDCL

Synopsis: Latteys Industries Limited has received a major order from Maharashtra State Electricity Distribution Company Limited (MSEDCL) to supply solar-powered water pumps across Maharashtra and is a part of the government’s Magel Tyala Saur Krushi Pump Yojana under the PM-KUSUM B scheme

The shares of this penny stock  majorly engaged in manufacturing and trading of various kinds of submersible pumps, agriculture pumps, and more, were in focus after receiving fresh order to supply water pumps. 

With the market capitalization of Rs. 125 Crores, the shares of Latteys Industries Limited were trading at around 21.75 per share, which is 42 percent discount from its 52 week high of Rs. 37.83 and is trading at a P/E of 63.5 whereas industry P/E stands at 38.4

What is the NEWS

Latteys Industries has recently informed the exchange that it has been awarded a contract from Maharashtra State Electricity Distribution Company Limited  to design, manufacture, supply, install, test, and commission 7,369 off-grid DC solar photovoltaic water pumping systems of 3 HP, 5 HP, and 7.5 HP capacities  for the entire state of Maharashtra under Magel Tyala Saur Krushi Pump Yojana /PM Kusum B Scheme

The total value of the order is around Rs.187.39 crore, and the project will be executed across the entire state of Maharashtra and is scheduled to be completed by December 2026. The order has been awarded by a domestic entity and does not fall under related party transactions. 

About the Company and Financials

Latteys Industries Ltd is majorly engaged in manufacturing and trading of various kinds of submersible pumps, agriculture pumps and equipment, industrial pumps and machinery, water pumps and electric motors which mainly covers several areas such as  solar, agriculture, domestic,export, buildings.

 The company has a strong network of over 1200 dealers and over 1200 retailers which spread across 6 states. It is also one of the leading manufacturers of energy efficient solar pumping solutions,  stainless steel pumps and motors. 

Year on Year analysis: Revenue from operations has increased from Rs. 18.73 Crores to Rs. 20.49 Crores, up 9.3 percent. Operating profit has decreased  from Rs. 1.42 Crores to Rs. 1.05 Crores, down 26 percent and net profit has decreased from Rs. 0.70 Crores to 0.58 Crores, down 17 percent. 

Quarter in Quarter analysis:  Revenue from operations has decreased from Rs. 23.56 Crores to Rs. 20.49 Crores, down 13 percent. Operating profit has decreased from Rs. 1.23 Crores to Rs. 1.05 Crores, down 14.6 percent and net profit has decreased from Rs. 0.66 Crores to Rs. 0.58 Crores , down 12 percent. 

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