Marine Electricals: A good bet
Marine Electricals (India), a company engaged in the provision of integrated electrical solutions, offers a good medium to long term prospect for investors, especially small investors, seeking to tide over uncertainty of equity markets.
A steady earnings performance and regular stream of order receipt augurs well.
Recently, the company bagged orders worth Rs 12.95 crore.
The first order has been received from Hindustan Shipyard Limited for the supply of MSB package along with APMS, SCD, and DBs, amounting to Rs 8.38 crore. The delivery of the said goods shall be made over a period of 8 months.
Another order is received from Mazagon Dock Shipbuilders Limited and Garden Reach Shipbuilders & Engineers Ltd for the supply of motorised shore supply cable handling and stowage system, amounting to Rs 4.57 crore. The delivery of these goods is for seven ships and therefore shall be delivered progressively over a period of three years.
With this order, the company’s current order book now stands at Rs 454.2 crore. The total order book includes the orders of Rs 301.55 crore from the marine segment and Rs 152.7 crore from the industrial segment.
Earlier, it bagged orders worth Rs 40 crore in the last two months, i.e., in the months of April and May.
Out of the total orders, the company received a significant order from Bridge Data Centres (Mumbai) LLP, a database management company. The order is worth Rs 25.65 crore while the company (Marine Electricals) will engage in the supply of power distribution systems and MV switch board package for Project Bytes.
Another significant order was secured from Blue Star Limited. Marine Electricals will provide blokset panels for Bluestar’s Salcomp Manufacturing India project, which is one of the leading manufacturers of power supplies for Apple mobiles and other electronic devices. The contract value amounts to Rs 3.5 crore.
Marine Electricals reported revenues of Rs 251.3 crore for FY21 while net profit was more than doubled at Rs 13.5 crore. The current order book is 2x of FY21 revenues giving a strong growth visibility for next two years.
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