Stock of this SME Company has zoomed 121% in 8 trading days

Shares of Evans Electric were locked at the 10 per cent upper circuit at Rs 189.75 on BSE on Friday, trading at fresh 52-week high amid heavy volumes. In comparison, the S&P BSE Sensex was down 0.52 per cent at 61,428 at 12:15 PM.

The average trading volumes of the counter jumped multi-fold with 110,000 shares, representing 8 per cent of total equity of the company, having, so far, changed hands on the BSE. There were pending buy orders for 32,500 shares on the BSE, the exchange data shows. On an average sub 10,000 shares traded in the past two weeks, data shows.

In the past eight trading days, the stock has zoomed 121 per cent from a level of Rs 86, hit on November 7, 2022. It had hit a record high of Rs 300 on July 1, 2020.

Evans Electric trades in the SME segment under the "M" group on the BSE. The trading, clearing, and settlement in the SME segment is done on a T+2 basis. Trades done in BSE SME scrips are required to be compulsorily settled in demat mode.

Meanwhile, Evans Electric has low outstanding equity shares of 1.37 million as on September 30, 2022. Promoters held 59.44 per cent stake in the company, while the remaining 40.56 per cent holding is with individual shareholders (23.32 per cent), and key managerial personnel – Nelson Lionel Fernandes (14.69 per cent), the shareholding pattern data shows.

For the first half (April-September) of the fiscal 2022-23 (H1FY23), Evans Electric reported a net profit of Rs 2.73 crore, as against Rs 37.67 lakh in the same period last year. The company's H1FY23 net profit also more-than-doubled against its entire previous fiscal FY22 net profit of Rs 82 lakh.

Evans Electric is in the field of repair and maintenance of large motors, generators, and transformers. All industries need these three products. Heavy industries require the larger electrical machines. As these machines get older the scope for the repair and maintenance increases in an exponential manner, the company said.
 

"At present, the company is executing the work of fire damaged outdoor bus ducts and transformer radiators. The company is also executing the work at site for the repair of the heaviest DC motor Armature in India weighing 100 tons. The company is looking to work with marketing agencies that can procure technically challenging high value orders and with limited competition," the company said in its FY22 annual report.