Shares of Spectrum Electrical Industries were trading at record highs on February 5 after making an intraday high of Rs 1,697.95 per share. Spectrum Electrical Industries shares witnessed a gap-up opening after it announced on bourses the approval of its wholly-owned subsidiary.
On February 4, the company notified the NSE of the incorporation of a wholly-owned subsidiary. The company further stated that the new subsidiary was formed to diversify its operations by tapping into the medical devices manufacturing industry.
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As per the announcement, the primary objective of the proposed company will be to develop, design and manufacture medical devices.
Spectrum Electrical Industries currently designs and manufactures electrical, automobile, and irrigation components. They serve as contract manufacturers and component suppliers to leading industry players on a Business-to-Business (B2B) model.
Spectrum Electrical Industries shares have surged more than 838 percent in the past one year and are currently trading at a PE of 190. Year-to-date, the stock is up 18 percent.
Promoter holding in the stock has increased by 3.43 percent over the last quarter to 74.88 percent.
The company declared total revenues of Rs 13.53 crore for the six months ending September 2023 with net profits of Rs 7.07 crore. For the period ending March 2023, Spectrum Electrical Industries declared total revenues of Rs 25.83 crore and net profits of 8.42 crore.
Spectrum Electrical Industries is NSE Emerge-listed SME company with market capitalisation of Rs 2,565.83 crore. SME stocks have been outperforming on bourses and experts have been cautioning investors on the possibility of excesses in the SME stocks.
BSE SME IPO index is up by more than 130 percent in the past one year while BSE Small Cap Index has gained by more than 64 percent and BSE Sensex is up by 19 percent.
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