Stock prices surged by 4% following the announcement of a significant order worth ₹221 crore from the Tata Group for the development of a Semiconductor and Li-ion Battery facility.
Semiconductor deal: The small-cap stock, Interarch Building Products Limited, specializes in providing turnkey pre-engineered steel construction solutions. Recently, the company experienced a 4 percent surge in early trading following the announcement of a significant order worth Rs. 221 crores from Tata Projects for a Semiconductor & Li-ion Battery facility.
In terms of price action, with a market capitalization of Rs. 2,571.53 crores, the shares of Interarch Building Products Limited reached a day’s high of Rs. 1,624.85 per equity share, marking a 4.46 percent increase. However, the stock later retreated from this high and was trading at Rs. 1,525.05, representing a 1.95 percent decrease from the previous day’s closing price of Rs. 1,555.45. Despite this, the stock has delivered a return of approximately 27.71 percent and has outperformed the Nifty Index since its listing.
The surge in the company’s stock can be attributed to the acquisition of two major projects. The first order is from TATA Semiconductor Assembly & Testing Pvt Limited for the construction of a semiconductor manufacturing facility in Morigaon, Assam. This project is a significant step towards enhancing India’s semiconductor ecosystem, in line with the government’s efforts to promote domestic electronics manufacturing.
The second order is from Agratas Energy Storage Solutions Pvt. Ltd for the development of India’s largest lithium-ion battery manufacturing unit in Sanand, Gujarat. This facility will play a crucial role in meeting the increasing demand for energy storage solutions, supporting India’s shift towards sustainable energy sources.
Notably, this is Interarch’s second lithium-ion battery manufacturing order, following a previous project with Exide Energy Solutions. In both instances, TATA Projects Limited serves as the EPC contractor, further solidifying Interarch’s position in the industry.
Management Commentary
Arvind Nanda, the Managing Director of Interarch Building Products, expressed his pride in partnering with Tata Projects Limited on these groundbreaking initiatives. Nanda emphasized the importance of the semiconductor and energy storage sectors in shaping India’s economic and technological future. He highlighted Interarch’s commitment to providing flexible, industry-agnostic infrastructure solutions that prioritize efficiency, reliability, and sustainability in every project. These collaborations underscore Interarch’s dedication to fostering innovation and driving growth in emerging industries.
About the Company
Established in 1983, Interarch Building Products Limited is a leading provider of pre-engineered steel construction solutions in India. The company specializes in turnkey projects, offering comprehensive services from design and engineering to manufacturing and on-site project management. Interarch’s product range includes metal ceilings, roofing, and complete pre-engineered buildings (PEBs) for industrial and commercial applications. The company’s focus on efficiency and sustainability is evident in its controlled manufacturing processes, which minimize waste and reduce construction time compared to traditional methods.
Financials & Ratios
In Q2FY25, Interarch’s Revenue from operations increased by 8.54 percent year on year, rising from Rs. 297 Crores to Rs. 323 Crores. The company’s profit also saw growth, from Rs. 15.17 Crores to Rs. 20.67 Crores.
In terms of Return ratios, Interarch reported a return on equity (RoE) of 20.44 percent and a return on capital employed (RoCE) of 28.22 percent in FY24. The company’s debt-to-equity ratio stood at 0.04 as of FY24.
Shareholding Pattern
As of September 2024, the promoters of Interarch Building Products held a 53.26 percent share, while Foreign Institutional Investors (FII) held approximately 5.52 percent, Domestic Institutional Investors (DII) held around 9.33 percent, and the remaining 31.89 percent was held by Public Investors.
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