Krishca Strapping Solutions Share Price Soars 557% in 11 Months – What’s Driving This Multibagger SME IPO?

Multibagger SME IPO: Since its debut on the NSE SME on May 26, 2023, Krishca Strapping Solutions’ share price has surged by nearly 557%, making its investors very wealthy. In 11 months, investors who received shares would have earned ₹7.09 lakhs today. The share price opened at ₹338 each on NSE, hit an intraday high of ₹357.40, and a low of ₹328.50. The share price closed at ₹350.

Technical Analysis:

According to analysts, Krishca Strapping shares saw a sharp rally in June, although recent sessions showed profit booking. Today, the stock regained momentum, holding key support. If this continues, the stock could move back towards ₹400, with immediate support at ₹330.

Stock Performance:

Significant gains were seen in June 2023 (79%), August 2023 (47%), January 2024 (25%), April 2024 (29%), and June 2024 (49%).

Company Overview:

Krishca Strapping Solutions produces and distributes strapping seals and tools. Its Chennai plant can produce 80 million seals and 18,000 MT of steel straps annually.

In the second half of the 2024 fiscal year, the company secured multiple contracts. It landed a ₹2.48 crore contract from Steel Authority of India (SAIL), valid until October 2025, and another order worth ₹67.25 lakhs from SAIL’s Salem facility, valid until October 2024.

Other Contracts:

Krishca also won a ₹20.25 crore packaging contract from Vedanta for securing trucks and containers. Additionally, it received a ₹1.39 crore order for steel strapping from Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant.

As of March 2024, Krishca Strapping had an order book worth ₹28.80 crores, including ₹1.39 crores from strapping contracts and ₹27.40 crores from packaging contracts.

Product Line Expansion:

The company continues to enhance its skills and expand its product line, including steel straps, steel seals, HDPE and LDPE materials, tarpaulins, dunnage air bags, cord straps, lashing belts, and desiccants. It is exploring operations in the Middle East to increase market presence and secure more contracts.

Financial Performance:

Krishca Strapping’s total income for FY24 was ₹105.68 crores, marking a 45.95% year-over-year increase. The company’s EBITDA for the year was ₹20.26 crores, up 46.02%, with an EBITDA margin of 19.17%. The profit after tax (PAT) for FY24 was ₹13.24 crores, up 41.73% year-over-year, with a PAT margin of 12.53%.

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