Dark horse stock of the day: Wonder Electricals surges 20% in morning trade

The shares of Wonder Electricals Limited witnessed a significant surge today. The stock commenced trading at Rs 239.80, marking a 4.7% increase compared to the previous day’s closing price of Rs 229.10. During the intraday session, the stock exhibited a remarkable 20% surge accompanied by a significant trading volume.

Upon scrutinizing today’s share volumes, it becomes apparent that there has been a substantial increase of over 7.10 times in trading volumes compared to its average volumes on the BSE. As of writing this article, the shares of the company are up by Rs 45.80, which is 19.99%, and are trading at Rs 274.90 each on the BSE.

The stock’s 52-week high and low are Rs 282 and Rs 132.55, respectively. Possessing a market capitalization of Rs 368 crore, the stock has showcased outstanding performance in recent periods, yielding a modest 8% return in the last month and an impressive 97% return in the past year.

Financial Performance

In the June quarter of FY24, the company’s revenue from operations experienced an increase of 12.03% YoY, going from Rs 104.40 crore to Rs 116.96 crore. The operating profit of the company fell from Rs 4 crore to Rs 3.11 crore, and on a sequential basis, it decreased significantly from Rs 9.65 crore to Rs 3.11 crore. The operating profit margin stood at 3%.

Meanwhile, the net profit of the company amounts to Rs 0.76 crore, against a profit of Rs 5.46 crore in the last March quarter of FY23.

The company’s return on capital employed (ROCE) and return on equity (ROE) are at 15% and 11.1%, respectively. The book value of the company is Rs 44.5, which means the stock is trading at a price-to-book value of 6.2 times in the market, whereas the price-to-earnings ratio is 68 times.

Business Overview

Wonder Electrics Limited established in 2014 as a prominent player in manufacturing fans is a fully integrated end-to-end manufacturer and supplier of ceiling fans, exhaust fans, pedestal fans, and brushless DC (BLDC) fans.

The company’s product range includes BLDC fans, ceiling fans, exhaust fans, pedestal fans, and TPW fans. It operates across two manufacturing facilities: Raipur Industrial Area, Uttarakhand, India, and Industrial Park Kucharam Village, Hyderabad, Telangana.

Technical Charts: Daily 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.