Shares of ISGEC Heavy Engineering rose 8% on May 29 after strong sales and profitability boosted investor confidence in the stock.

At 9:34 am, the stock was trading at Rs 576.50, up 7.1%. So far today, the stock has traded 25,524 shares, compared with its five-day average of 18,588 shares, up 37%. The stock hit a 52-week high of Rs 587.95 today.

The company has a market capitalisation of Rs 4,238.98 crore.

Consolidated revenue rose 28% year-on-year to Rs 2,042.7 crore in the quarter ended March, driven by higher year-on-year sales in the three segments of machinery and equipment manufacturing, engineering, procurement and construction, and ethanol (plants under construction) in the Philippines.

The company’s quarterly net profit soared 138% year-on-year to Rs 93.16 crore. The company’s EBITDA margin widened to 8.04% from 6.67% a year ago, as financial and raw material costs fell.

With a better work mix leading to order inflows and margins gradually improving, analysts said after last quarter’s earnings that they expect execution to pick up with a gradual improvement in profitability. The company also noted that its manufacturing business is expected to grow by 15% in FY24, which could further improve margins.