This newly-listed Ashish Kacholia-backed SME stock jumped 18%; here's why

Shares of recently-listed SME stock Shree Refrigerations Ltd (SRL), backed by ace investor Ashish Kacholia, surged on Monday after the company announced a large order win. The stock hit the 20 per cent upper circuit during the session before settling 18.31 per cent higher at Rs 213.20 on BSE.

SRL informed that it has secured an order worth Rs 106.62 crore from Hindustan Shipyard Ltd (HSL) for the supply of turnkey HVAC systems to the Indian Navy's Fleet Support Ship (FSS) project. The company had listed on the SME (Small and Medium Enterprise) platform on August 1 through its IPO.

"HSL is building five Fleet Support Ships for the Indian Navy. These vessels will carry fuel, food and ammunition to naval ships at sea, enhancing operational reach and endurance. The project is a key step in India's Atmanirbhar Bharat mission," SRL said in its release.

This latest order adds to SRL's previous contracts with HSL, which include Refrigeration Plants worth Rs 30.72 crore and Magnetic Bearing Chillers worth Rs 68.61 crore. With these, SRL will be delivering a complete turnkey air-conditioning and refrigeration solution for the first time on a naval ship of such scale and complexity.

Following the development, the company said its total order book now exceeds Rs 300 crore, marking a significant expansion of its presence in defence and national projects.

Headquartered in Karad, Maharashtra, Shree Refrigerations manufactures a wide range of HVAC systems, including chillers, marine HVAC solutions and customised equipment for industries such as defence, pharmaceuticals, chemicals and automotive. The company also supplies specialised products like cabin leakage testers and psychometric labs and has long-standing contracts with the Indian Navy.

For FY25, SRL reported a 22 per cent rise in revenue to Rs 99.1 crore and a 17 per cent increase in profit after tax (PAT) to Rs 13.55 crore.