Sanghvi Movers, the flagship company of the Sanghvi Group, has witnessed a staggering increase in its share price. In the current month alone, the stock zoomed 20.32% to mark a new all-time high of ₹578.7 apiece. It rallied 58% in the last three-month period and 73.5% in the current year so far, spiking from ₹328 to ₹569 level, extending its winning streak for fourth consecutive year.
Notably, the stock crossed the ₹400 mark in April 2023 after nearly eight years, and in the following three months to July, it surpassed the ₹500 mark.
Over the last one-year, the company's shares have rewarded impressively, gaining 142%, and they have produced a whopping return of nearly 765%, spiking from ₹66 apiece to the current level of ₹569.
The company is the largest crane rental company in India and Asia and is ranked the sixth largest in the world. It is engaged in the business of providing hydraulic and crawler cranes to various industries such as Power, Windmill, Steel, Railways and Metro, Petrochemicals Cement sector, and many others. According to industry experts, the company is likely to benefit from the ongoing capex upcycle across sectors.
In an exchange filing on Monday, the company announced that it has secured work orders amounting to ₹150 crore from well-established Independent Power Producers (IPP) in the renewable energy sector for providing crane rental services along with allied services comprising of WTG surface logistics, inter-carting, installation & pre-commissioning of WTGs, development of wind farm and storage yard.
Earlier in December, the company bagged the single largest order, aggregating ₹35 crore, for the deployment of various capacity cranes for a renewable wind energy independent power producer (IPP) for a duration of 12 months.
In an interview with CNBC-TV18, Rishi Sanghvi, MD of Sanghvi Movers, said that the company remains confident in its ability to meet the rising demand for crane services and solidify its market leadership with a robust order book and anticipation of strong financial performance.
"All the capacity addition along with metros, railways, bridges, and ports being built around the country is going to have a significant increase in the demand for cranes. And going forward, we have a very strong order visibility by some of our focus reaching out into FY24–25 as well. So, I do believe that the capex upswing will create a very strong demand, and it's a very good growth story for the company," he added.
Regarding financials, the company posted a consolidated net profit of ₹112 crore for the fiscal year ending March 31, 2023, a significant 286% jump from ₹29 crore net profit recorded in FY22. The total revenue from operations clocked a YoY growth of ₹456 crore in FY23.
To cater for the growing demand for cranes services, the company has approved the Capex of ₹264 crore for FY23–24. This allocation reflects a 63% increase compared to the capex completed by the company in FY22–23.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
