Dredging Corporation of India jumps 20% in a day, surpassing a four-year high

The shares of Dredging Corporation of India witnessed a significant surge today. The stock commenced trading at Rs 431, marking a 1% increase compared to the previous day’s closing price of Rs 427. During the intraday session, the stock exhibited a remarkable 20% surge accompanied by significant trading volume. 

Upon scrutinizing today’s share volumes, it becomes apparent that there has been a substantial increase of over 12.36 times in trading volumes compared to its average volumes on the BSE. At the time of writing this article the shares of the company are up by Rs 81 or 19% and are trading at Rs 508.20 each on the BSE. 

The stock’s 52-week high and low are Rs 512.45 and Rs 274.45, respectively. Possessing a market capitalization of Rs 1423 crore, the stock has showcased outstanding performance in recent periods, yielding a remarkable 33% return in the last week and an impressive 82% return in a year. 

Below are the daily trading and delivery volumes of the shares in both NSE and BSE:

Financial Performance    

In the June quarter of FY24, the company’s revenue from operations experienced a decline of 6% YoY, going from Rs 218 crore to Rs 204 crore. The operating profit of the company grew from Rs 25 crore to Rs 56 crore and on a sequential basis it increased significantly from Rs 27 crore to Rs 56 crore, the operating profit margins jumped from 12% to 27%.   

Whereas the net profit of the company amounts to Rs 15 crore against a net loss of Rs 16 crore, the net profit margins stood at 8% in Q1 FY24. 

The company’s return on capital employed (ROCE) and return on equity (ROE) are significantly low at 2.52% and 0.89%, respectively. The Book value of the company is Rs 508 which means the stock is trading at Price to book value of 1 time in the market, whereas the price-to-earnings ratio is 32.7 times.  

Business Overview 

Dredging Corporation of India Limited is an India-based company that engages in providing dredging services to the major ports of the country in India. The company offers services including capital dredging, maintenance dredging, beach nourishment, land reclamation, shallow water dredging, project management consultancy, and marine construction. It also offers a range of dredging and allied services to users in India and abroad, contributing to national development. 

Here is the chart presentation of the company’s shares on the weekly time frame:

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.