- 03 Jan 2025
- ICICI Securities
AEROFLEX INDUSTRIES HAS COMPLETED CAPACITY EXPANSION OF S.S. HOSE AND BRADING
News: Aeroflex Industries has completed capacity expansion of S.S. Hose and Brading by an additional 1.5 million meters, increasing the production capacity from 15.0 million meters per annum to 16.5 million meters per annum. The company has also successfully completed the expansion of its Composite Hose capacity with the addition of 3 new lines, bringing the total number of lines to 6. The company has commenced commercial production of a new product mix and launched a new product “Metal Bellows” with an annual production capacity of 1,20,000 pieces.
Views: Commissioning of these new capacities have been largely on time and in-line with expectations. Company's focus remains on growth going ahead as the company is looking for further capacity expansions and in-organic opportunities. Company is also planning to raise Rs 400 crore through QIP for these organic/in-organic expansion. Earnings growth visibility remains strong with capacity expansions and increasing share of better margin products. Management guides 20%+ YoY revenue growth for FY25E vs 10% YoY in H1FY25 (which implies strong growth in H2FY25)
Impact: Positive