Shares of Krishna Defence and Allied Industries have yielded an impressive return of over 83% in the current year so far. Since the debut on the stock exchanges on April 6, 2022, the shares have been on an upward trajectory, delivering a staggering 280% return to date.
From its IPO price of ₹39, the stock is currently up by 658%, and from a trading price of ₹90.90 apiece in October last year, it has spiked by 225% to reach the current trading price of ₹295.80 apiece. Notably, the stock has zoomed nearly 56% in August alone, registering the best monthly performance since listing.
This remarkable performance in shares can be attributed to the company's strong order acquisition. Krishna Defence and Allied Industries is engaged in the diversified business of manufacturing defence application products, dairy equipment products, and kitchen equipment to serve midday meals in large organisations.
The Defence Research and Development Organization ("DRDO") has awarded the company various Transfer of Technology ("TOT") agreements under the Defence sector for the production and supply of specialised defence application goods.
Under its dairy vertical, it manufactures and sells engineering products used in the dairy industry. The company has also forayed into the manufacturing of homeland security products to be used in the defence industry for the Indian Armed Forces.
Recently, on September 5, the company bagged an order from the Ministry of Defence (MoD) for the supply of a special steel product intended for naval applications, valued at ₹43.76 crore.
With this contract win, the company's total order inflow for the current financial year reached ₹174 crore. Its opening order book at the start of the current financial year was ₹76.96 crore, as per the company's exchange filing.
At of the end of the June quarter, the promoters own 73.4% of the stake in the company, and the general shareholders owns the remaining 26.6%.
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