Meera Industries Limited, a microcap firm specializing in custom textile machinery and parts, experienced a notable surge of 9.39% in its stock price during day trade hours. This surge came after the company announced securing a lucrative order worth ₹2.8 crore from Meda Carpet in Saudi Arabia and Slutsk Belts in Belarus.
Despite its modest market capitalization of ₹55 crores, Meera Industries Limited demonstrated strong performance in the stock market. Its shares traded at ₹52, marking a 1.58% increase from the previous day’s closing price of ₹51.19. Impressively, the stock outperformed the Nifty, boasting a remarkable year-to-date return of 34.89%.
The company’s financials also showed positive trends, with a significant year-on-year increase in revenue from operations. In Q3FY24, Meera Industries recorded a 50.39% YoY revenue growth, surging from ₹5.06 crores to ₹7.61 crores. Sequentially, revenue rose by 12.07% quarter-on-quarter (QoQ). Moreover, its net profit witnessed a substantial YoY increase of 215%, climbing from a loss of ₹0.40 crores in Q3FY23 to a profit of ₹0.46 crores in Q3FY24. On a QoQ basis, net profit surged by 43.75%.
The recent order from Meda Carpet in Saudi Arabia and Slutsk Belts in Belarus includes the purchase of Meera Industries’ MEERABAH Machine and Heavy Duty Twister Machine, valued at USD $1,61,000 and USD $1,75,250, respectively. These orders not only contribute to the company’s revenue but also enhance its goodwill and export potential.
Meera Industries Limited specializes in manufacturing and selling custom textile machinery and machine parts, as well as yarn trading. Its product range includes two-for-one twisters, servo-controlled cop winders, cone-to-cone winders, ring twisting machines, covering machines, and heavy-duty twisters. Additionally, the company’s TFO twisting machines feature a versatile gear change system suitable for various settings.
In terms of revenue segmentation for FY23, the majority of Meera Industries’ revenue (96.98%) stemmed from manufactured product sales, while service sales contributed 1.28%, and other operating revenue accounted for 1.74%. Despite a slight decline in manufactured product sales YoY, service sales witnessed positive growth of 24.32% YoY, reflecting the company’s diversified revenue streams.
