Marine Electricals rallies 5% after it bags order from Goa Shipyard

Shares of Marine Electricals surged over 5 per cent to Rs 39.4 per share in Tuesday’s intra-day trade, after the company bagged an order worth Rs 13.9 crore from Goa Shipyard. In comparison, the Nifty50 index was up 0.4 per cent at 17,920 levels, as of 10:33 am.  
 

The company will supply shaft generators, main switch boards, distribution boards, and associated systems with OBS for PCV Project from Goa Shipyard. The delivery of the mentioned goods shall be completed over a period of one year.
 

In the past one month, shares of Marine Electricals have gained 0.2 per cent, as against 1.01 per cent decline in the NSE Nifty index. Moreover, shares of Marine Electricals rallied over 8 per cent in three months, as compared to a 2.5 per cent decline in the Nifty50 index, during the same period.
 

Marine Electricals is an integrated services provider in the fields of electrical automation and information and communication technology solutions to marine, renewable, and industrial sectors.
 

In the October-December quarter of FY23 (Q3FY23), net profit of Marine Electricals climbed 73.8 per cent year-on-year (YoY) to Rs 7.3 crore, as against Rs 4.2 crore, in the year-ago period. Sales, too, surged 15.4 per cent YoY to Rs 126.8 crore in Q3FY23 from Rs 109.7 crore in Q3FY22.  
 

That said, total expenses during the quarter climbed 13.3 per cent YoY to Rs 10,621 crore from Rs 9,367 crore in Q3FY22.

Segment-wise, electrical and electronics revenue rose 17.89 per cent YoY to Rs 11,630 crore in Q3FY23, whereas profit before tax and interest (PBT) soared 65.3 per cent YoY to Rs 11,630 crore.
 

In the prior month, analysts at ICRA reaffirmed ‘stable’ outlook for long-term ratings of Marine Electricals on a healthy order book position as it provides steady revenue visibility in the near-term.
 

“The ratings continue to draw comfort from Marine Electricals' established position and track record of providing integrated electrical solutions to the marine and industry sectors. Besides, its reputed customer base in the Government and private sector reduces the counterparty risk to an extent,” said the ratings agency.
 

Besides, factors like long experience of promoters, reputed and diversified client base, technical tie-ups with reputed companies, and comfortable capital structure were other reasons behind the ratings upgrade, added analysts.