During Tuesday’s deals, the shares of Surya Roshni Limited zoomed by 2.76%. The company’s current market capitalisation is Rs 8,615.66 crore.
Recent developments
The company scored a major win, securing a hefty Rs 60.51 crore order (including GST) for supplying MS-Pipe (Coated) under a Multi-Village Drinking Water Supply Scheme. This domestic contract strengthens their core business in steel pipes and strips, and further bolsters their order book for the next 12-16 weeks.
This significant government project win bodes well for the company’s future prospects and is likely to be met with positive sentiment from the market.
Revenue distribution
This company’s revenue landscape paints a picture of product and regional diversity. Their bread and butter is in steel pipes and strips, contributing a whopping 80.31%. Lighting takes up the remaining slice of the pie at 19.69%. While other product categories like bearing rings, windmills, and various pipe types currently hold no revenue share, this could represent potential areas for future growth.
Geographically distribution
Geographically, the company spreads its bets fairly evenly across India, with each of the four main regions - South, North, West, and East - bringing in between 15% and 25% of the revenue. Notably, they haven’t segmented revenue within India by specific states like Karnataka or Maharashtra, suggesting a more pan-regional presence within these larger areas. Finally, a healthy 13.96% of their revenue comes from outside India, showcasing their international reach.
Overall, this revenue distribution highlights the company’s reliance on the core steel pipe and strip business while hinting at a potential for diversification down the line. Their broad geographic footprint across India with additional footholds abroad further strengthens their market position.
About company
Established in 1973, Surya Roshni Limited has grown to become India’s leading exporter of ERW Pipes, the largest producer of GI Pipes, and the second-largest player in the lighting segment. The company has strategically positioned itself by emphasizing the development of a value-added product mix, including 3LPE Coated pipes, Alkyd pipes, and more. With a comprehensive product portfolio and a commitment to innovation, Surya Roshni Limited plays a significant role in India’s pipes and lighting industries.
Shareholding pattern
The Foreign Institutional Investor (FII) has demonstrated increased confidence by elevating its stake from 5.15% to 5.26% between September 2023 and December 2023. This positive move in FII investment is likely to boost overall investor confidence in the company.
Furthermore, the stock has witnessed significant buying activity as it has given returns of more than 100% in the just 6 months.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.