| Market Cap | ₹38.48 CrMicro Cap |
|---|---|
| Revenue Annual | ₹14.73 CrFY24-25 |
| PE Ratio | 13.13TTM |
| Order from | CHANDAN PROCESS |
| Execution period | Within 6 Months |
| Deal value | ₹2.01 Cr |
| Share of market cap | 5.2% |
| Share of annual revenue | 13.6% |
Key highlights
- Total order value stands at ₹2,00,60,000 inclusive of 18 percent GST
- Contract involves the supply of 50 Qts of Brazed Carbide Anvils
- Agreement specifies a strict execution timeline of within six months
- Payment terms require 100 percent settlement at the time of delivery
- The domestic order was awarded by the entity Chandan Process
Order Scope and Execution
The contract awarded to Shining Tools Limited by Chandan Process involves the supply of 50 Qts of Brazed Carbide Anvils. Valued at approximately ₹2.01 crore including GST, the agreement stipulates that the entire quantity must be delivered within a six-month window. A key financial term of this domestic order is the payment structure, which requires 100 percent of the commercial value to be settled at the time of delivery.
This ensures immediate cash flow upon fulfillment of the manufacturing requirements and aligns with the company's working capital management strategies for specialized tool production.
Business and Manufacturing Overview
Shining Tools Limited, based in the industrial hub of Rajkot, Gujarat, specializes in the production of high-performance cutting tools and wear-resistant components. The company's portfolio includes Polycrystalline Diamond (PCD) and Polycrystalline Cubic Boron Nitride (PCBN) tools, alongside brazed carbide products like the anvils specified in the recent contract. Operating from an ISO 9001:2015 certified facility on the Rajkot-Gondal Highway, the firm caters to industrial segments requiring precision engineering.
Since its incorporation, the company has focused on expanding its presence in the domestic general industrials market by providing specialized tooling solutions for heavy machinery and manufacturing.
Financial Performance and Valuation
- The company reported annual operating revenue of ₹14.73 crore with a net profit of ₹2.93 crore for the recent financial year.
- Annual revenue growth reached 39.28 percent, while net profit recorded a significant year-on-year increase of 86 percent.
- Shining Tools Limited maintains a high promoter holding of 70.68 percent with no pledged shares reported.
- The stock currently trades at a price-to-earnings ratio of 13.13, which is notably lower than the sector average of 58.9.
- Return on Equity stands at 35.63 percent, reflecting strong capital efficiency in the industrial machinery segment.
Industrial Sector Landscape
The industrial machinery sector in India is experiencing a growth phase, driven by increased domestic manufacturing and infrastructure development. Within the general industrials segment, sector-wide revenue growth was recently recorded at 16.33 percent, while net profit growth for the industry reached 27.62 percent. Demand for specialized carbide components is closely linked to the automotive, construction, and heavy engineering industries.
As manufacturing entities look to localize supply chains, domestic manufacturers of high-precision tools like Shining Tools Limited are positioning themselves to capture market share through localized production and competitive delivery timelines.
| Share price | ₹68 |
|---|---|
| Market capitalisation | ₹38.48 Cr |
| Revenue (annual) | ₹14.73 Cr |
| Net profit (annual) | ₹2.93 Cr |
| P/E (TTM) | 13.13×Sector 58.9× |
| Promoter holding | 70.68% |
| FII holding | 0%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Shining Tools Limited announcing the receipt of a material order for brazed carbide anvils. Market figures from a third-party data provider.
