Microcap Stock Under ₹20 in Focus After Securing ₹11 Crore Order from Delhi’s Higher Education Department
SBC Exports Ltd Gains Attention Amid New Work Order Worth ₹111.29 Million
Microcap Stock : Investors are keeping a close eye on SBC Exports Ltd, a microcap company involved in trading and manufacturing of garments, manpower supply, and tour operator services, after it secured a significant work order worth ₹111.29 million. The order was awarded by the Higher Education Department Delhi through Guru Gobind Singh Indraprastha University for providing manpower outsourcing services over a period of two years.
This development has fueled interest in the stock, which trades under ₹20 per share, making it one of the most actively followed microcap stocks in the market today.
Share Price Movement: Moderate Gains with Strong Long-Term Returns
On Monday, the stock of SBC Exports Ltd reached an intraday high of ₹19.30 per share, reflecting a gain of 2.11%. However, by 2:00 PM, it had slightly retreated to ₹19 per share, up 0.6% from its previous close of ₹18.90.
Despite short-term fluctuations, the company has delivered stellar long-term returns to its investors:
- 270% returns in the last three years
- 676% returns since its listing in November 2021
These impressive figures indicate the company’s ability to generate consistent value, even in the microcap space.
Understanding the ₹11 Crore Order and Its Impact
The new order, valued at ₹111.29 million (₹11.13 crore), is a major win for SBC Exports Ltd. Awarded by Delhi’s Higher Education Department, the contract involves manpower outsourcing services for a period of two years.
This contract aligns well with the company’s IT & Manpower Supply segment, which has been one of its key revenue drivers. The deal is expected to strengthen the company’s revenue stream and improve its financial stability.
Strong Financial Performance in Q3FY25
SBC Exports Ltd has been reporting consistent growth in its financial performance, as reflected in its latest quarterly results:
| Financial Metric | Q3FY24 | Q3FY25 | YoY Growth (%) |
|---|---|---|---|
| Revenue from Operations | ₹51.96 Cr | ₹72.04 Cr | 38.6% |
| Net Profit | ₹2.87 Cr | ₹3.58 Cr | 24.74% |
| EBITDA | ₹4.65 Cr | ₹5.93 Cr | 27.5% |
These numbers demonstrate the company’s ability to scale operations and increase profitability despite challenges in the microcap segment.
Bonus Issue: A Reward for Shareholders
In a recent announcement on January 24, 2025, SBC Exports Ltd approved a bonus issue in the ratio of 1:2 (one equity share for every two shares held).
- A total of 15.87 crore equity shares will be issued as bonus shares.
- The record date for the bonus issue is yet to be announced.
Such corporate actions increase liquidity in the stock and make it more attractive to retail investors.
About SBC Exports Ltd
SBC Exports Ltd operates through three business segments:
- Garment Manufacturing & Trading
- IT & Manpower Supply
- Tour & Travel Operations
With a diversified business model, the company has been able to grow steadily across multiple industries.
Key Financial Ratios and Stock Performance
| Metric | Value |
|---|---|
| Market Cap | ₹599 Cr |
| Current Price | ₹19.0 |
| 52-Week High / Low | ₹37.9 / ₹16.5 |
| Stock P/E | 35.5 |
| Book Value | ₹1.75 |
| Dividend Yield | 0.26% |
| ROCE (Return on Capital Employed) | 24.5% |
| ROE (Return on Equity) | 23.9% |
| Face Value | ₹1.00 |
| Promoter Holding | 64.2% |
| Debt-to-Equity Ratio | 0.69 |
| Price-to-Earnings Ratio | 35.5 |
| Pledged Shares | 20.0% |
| QoQ Profit Growth | -36.4% |
| Quarterly Profit Variation | 15.1% |
| Industry P/E | 23.5 |
| Graham Number | ₹4.58 |
| Intrinsic Value | ₹4.81 |
| Relative Strength Index (RSI) | 35.4 |
| Earnings Per Share (EPS) | ₹0.53 |
| Total Equity Shares | 31.8 Cr |
| PEG Ratio | 0.74 |
| 200-Day Moving Average (DMA) | ₹25.8 |
| Free Cash Flow (Last 3 Years) | ₹-26.3 Cr |
| Free Cash Flow (Latest) | ₹-14.3 Cr |
| Total Debt | ₹38.2 Cr |
These ratios indicate strong financial health, though investors should note the negative free cash flow and high P/E ratio compared to industry peers.
Should You Invest?
SBC Exports Ltd has shown consistent growth in revenue and profits while maintaining a strong return on capital employed (ROCE) of 24.5%. The recent ₹11 crore order strengthens its manpower outsourcing segment, while the bonus issue increases its appeal among retail investors.
However, there are some concerns:
- Stock P/E of 35.5 is higher than the industry average of 23.5, making it relatively expensive.
- Negative free cash flow suggests that the company is investing heavily in expansion, but investors should monitor its cash position.
- Stock is trading below its 200-day moving average (₹25.8), indicating short-term weakness.
Conclusion: If you are looking for a microcap stock with high growth potential, SBC Exports Ltd is worth considering, but it is advisable to assess risk factors before investing.
Final Thoughts
The stock of SBC Exports Ltd is in focus following its recent order from Higher Education Department Delhi. While its financial performance has been impressive, investors should weigh the high valuation and negative cash flow trends before making investment decisions.
Would you invest in this stock? Let us know your thoughts in the comments!
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.