Stock of this Z group company has zoomed over 3,300% so far in 2024

Marsons' shares hit a new high of Rs 267.55 in intra-day trade today, after having skyrocketed 3,352%, or nearly 35 times, from level of Rs 7.75 on December 29, 2023.

Shares of Marsons hit a new high of Rs 267.55, as they locked in 5 per cent upper circuit on the BSE on Thursday’s intra-day trade.

Thus far in calendar year 2024, the stock price of Marsons has skyrocketed 3,352 per cent, or nearly 35 times, from the level of Rs 7.75 it was on December 29, 2023.

Out of 186 trading days, the stock of the transformers manufacturer and distributor company has locked in upper circuit on 158 days, data from the exchanges showed.

Currently, Marsons is trading under the 'Z' group of stocks on the Bombay Stock Exchange (BSE). This group includes companies that have failed to comply with the listing requirements laid out by the bourses, and/or have failed to resolve investor complaints.

Stocks are also classified in the 'Z' category if they have not made the required arrangements with both the depositories, that is, Central Depository Services (CDSL) and National Securities Depository (NSDL) for the dematerialisation of their securities.

Marsons is engaged in the manufacturing and distribution of transformers in the capacity range of 10 KVA to 160 MVA 220 kV class.

According to the management, the demand for the company’s product in coming years will increase significantly.

The expansion of the infrastructure industry and real estate business, extensive rural electrification programme of the Indian government, development of shopping malls, and complexes, among other infrastructure development activities, will create demand for various types of transformers, the company's management said in its FY24 annual report.

They added that the company, working in this industry with flexibility, will survive and have a bright future due to the growing demand.

The current scenario is very encouraging because the major thrust of the government is on the power and Infrastructure sector. However, the company’s nature of business is capital intensive and hence any delay in the cycle causes huge interest loss and weighs on the bottom line of the company, the management added.

Meanwhile, for the April to June quarter (Q1FY25), Marsons had reported a net profit of Rs 5.24 crore, compared to a net loss of Rs 0.43 crore in the year ago quarter.

The company had posted a net profit of Rs 0.45 crore in Q4FY24.

Net sales of the company rose to Rs 29.88 crore in Q1FY25, from Rs 0.23 crore in Q1FY24.