This smallcap stock has surged 74% from March low; zoomed 280% in 1 year

Shares of The Anup Engineering hit a new high of Rs 2,186.95 as they rallied 19% on the BSE in Monday's intraday trade

Shares of The Anup Engineering hit a new high of Rs 2,186.95 as they rallied 19 per cent on the BSE in Monday's intraday trade, in an otherwise weak broader market, after the company reported robust March quarter (Q4FY24) results with adjusted profit after tax up 46.5 per cent year-on-year (Y-o-Y) at Rs 28.5 crore. In comparison, the S&P BSE Midcap and Smallcap indices were down 1 per cent.

Revenues came in at Rs 156.9 crore, up 9 per cent Y-o-Y and 22 per cent quarter-on-quarter (Q-o-Q). Order backlog is up 61 per cent Y-o-Y at Rs 854 crore, thereby ensuring strong growth prospects going ahead. Earnings with earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin improved 290bp at 23.8 percent on the back of robust execution and operating leverage.

Meanwhile, the board has recommended a final dividend of Rs 15 per equity share and a one-time special dividend of Rs 5 per equity share, totalling to a dividend of Rs 20 per equity share of face value of Rs 10 each, for the financial year ended March 31, 2024.

On outlook, The Anup Engineering said the company has a strong order book for FY25 and enquiry pipeline on hand. Of the total order book of Rs 854 crore, more than half or Rs 488.20 crore are export orders. The transaction of acquisition of Mabel will be completed in current quarter i.e. Q1FY25.

Enquiry pipeline remains strong for the company's products (heat exchangers, reactors & vessels) in both domestic and export markets, led by buoyant capex scenarios in sectors like oil & gas, petrochemicals, hydrogen, fertilizers etc.

The Anup Engineering is one of the leading manufacturers of process equipment like heat exchangers, vessels, reactors, columns etc. The company supplies these equipment to sectors like oil & gas, petrochemicals, chemicals, fertiliser, power, aerospace and other process Industries in India and worldwide.

The stock of the smallcap industrial products company has bounced back 74 per cent from its March low of Rs 1,254.65 (adjusted to 1:1 bonus share). In the past one year, it zoomed 280 per cent from the level of Rs 576.22.

New leadership, thrust on export markets and strong capex cycle in India puts Anup in a sweet spot. ICICI Securities believe the company will be able to deliver 20 per cent plus growth over the next 2-3 years given the strong backlog and order pipeline. The brokerage firm remains positive about the company.