Tega Industries Stock Skyrockets 13% After Impressive 651% QoQ Profit Surge
Tega Industries: In a stunning display of growth, Tega Industries Limited’s stock soared 13.20% on Wednesday after the company reported an outstanding 651.39% quarter-over-quarter (QoQ) surge in net profits. The sharp rise in its stock price and its remarkable financial performance in the December quarter has caught the attention of investors, analysts, and market watchers alike.
Stock Price Movement
The stock of Tega Industries witnessed a significant price rally on Wednesday’s trading session, hitting an intraday high of Rs. 1,733.65 per equity share, representing a 13.20% jump from the previous closing price of Rs. 1,531.45. The stock opened at Rs. 1,548.45, and as of the latest market updates, it was trading at Rs. 1,635.30. This surge in stock price comes on the back of impressive earnings growth and the positive momentum driven by strong market sentiment.
The company’s market capitalization now stands at a robust Rs. 10,880.55 crore, reflecting the growing investor confidence in Tega Industries’ future prospects. The recent rise in stock price has placed the company in a favorable position within the small-cap space.
Q3 FY25 Results: An In-depth Look
Tega Industries Limited, which designs and manufactures critical-to-operate consumables for industries such as mining, mineral processing, and material handling, has posted its consolidated revenue from operations at Rs. 409.27 crore for Q3 FY25. This marks a 20.30% year-on-year (YoY) increase from Rs. 340.20 crore in Q3 FY24 and a 15.84% rise from Rs. 353.30 crore in Q2 FY25.
The company’s revenue was primarily driven by consumables, which contributed 86.67% (Rs. 355.64 crore) of the total revenue, while equipment sales made up 13.33% (Rs. 54.71 crore).
A 651% Surge in Net Profit
The highlight of Tega Industries’ performance in Q3 FY25 is the massive growth in net profit. The company reported a net profit of Rs. 54.25 crore, a 52.30% increase from Rs. 35.62 crore in Q3 FY24. However, the most striking figure is the 651.39% QoQ growth, as the net profit surged from just Rs. 7.22 crore in Q2 FY25. This stellar performance has undoubtedly caught the attention of both retail and institutional investors, reinforcing the company’s potential for growth in the coming quarters.
Additionally, the basic earnings per share (EPS) increased by 52.05%, standing at Rs. 8.15 compared to Rs. 5.36 recorded in the same quarter last year.
Product Offering: A Diverse Range of Industrial Solutions
Tega Industries operates through two main business divisions, catering to a wide array of industrial sectors.
- Consumables Division – The first division offers a comprehensive range of products, including mill liners, hydrocyclones, screens, trommels, and conveyor products. In addition to manufacturing, it provides plant audits and maintenance services.
- Tega McNally Minerals – The second division focuses on heavy equipment used in mineral processing and material handling, including crushers, thickeners, centrifuges, flotation cells, and sand-washing plants.
These two divisions provide a robust portfolio of products critical to various industries, underscoring Tega Industries’ versatility and importance in the industrial sector.
Global Presence and Manufacturing Capabilities
Tega Industries has firmly established itself as a global leader with a strong presence in key international markets. The company operates manufacturing facilities in Chile, South Africa, and Australia, which specialize in mill liners, screens, and chute liners.
Domestically, the company runs three facilities in Gujarat and West Bengal, focusing on mill liners, wear products, hydrocyclones, and conveyor systems. Additionally, Tega McNally Minerals has four more manufacturing units in India, producing crushers, flotation cells, and mills.
The company’s global reach extends to over 92 countries, serving more than 700 customers worldwide, and it employs over 1,059 people. This extensive operational network allows Tega Industries to effectively serve both local and international markets.
Financial Ratios and Performance Metrics
As Tega Industries continues to impress with its strong financial performance, a closer look at its key financial ratios provides further insight into its financial health. Below is a snapshot of the company’s financial ratios:
| Financial Metric | Value |
|---|---|
| Market Cap | ₹ 10,943 Cr. |
| Current Price | ₹ 1,645 |
| Stock P/E | 64.8 |
| Book Value | ₹ 188 |
| Dividend Yield | 0.13% |
| ROCE (Return on Capital Employed) | 19.2% |
| ROE (Return on Equity) | 17.3% |
| Face Value | ₹ 10.0 |
| Debt to Equity | 0.23 |
| Industry P/E | 39.0 |
| Debt | ₹ 288 Cr. |
| PEG Ratio | 1.55 |
| Intrinsic Value | ₹ 594 |
| Graham Number | ₹ 346 |
| Piotroski Score | 5.00 |
| Price to Book Value | 8.74 |
Conclusion
Tega Industries’ strong quarterly performance, highlighted by the dramatic increase in profits and robust revenue growth, has led to a surge in stock price. With a comprehensive portfolio of products serving the mining, mineral processing, and material handling industries, coupled with a strong global presence, the company seems poised for continued growth.
Investors have responded positively to the results, and the company’s future prospects look promising, especially with the increase in demand for its critical consumables and equipment. As Tega Industries continues to expand its operations globally, its stock is likely to remain a key player in the small-cap market, offering a promising opportunity for investors looking for growth.
With a solid foundation, impressive financial metrics, and an increasing demand for its products, Tega Industries is well-positioned for the future.
For more market insights, follow our blog.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
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.