Synopsis: Shares of this microcap stock surged 5% after securing an interim sales agreement to supply 2,40,000 NATO 155mm M107 shells over 24 months, boosting its defence export strategy with rolling payments.
The shares of this company are in the business of manufacturing, machining & grinding of engineering of goods, steel plates & manufacture of mould base & dies set are in the spotlight after it hit 5 percent upper circuit in today’s market session following an Interim Sales Agreement for the supply of NATO spec & Standard 155mm M107 empty shells.
With a market capitalisation of Rs. 568 cr, the shares of Sunita Tools Ltd closed at 929.30 per share, locked at 5% upper circuit in today’s market session, up from its previous close of Rs. 885.05 per share. The stock has gained 18% over the past year, risen 25% year-to-date, appreciated 21% in the last six months, and surged 66% in the past month.
About the agreement
Sunita Tools Ltd has entered into an interim sales agreement to supply 2,40,000 empty NATO Spec & Standard 155mm M107 artillery shells. The supply will be made at a rate of 10,000 units per month over a 24-month period, with some flexibility provided as a grace period.
Under the terms of the agreement, payment will be made on a rolling basis, with 50% advance covering three months of supply. Subsequent monthly deliveries will be invoiced and paid in advance, adjusted against the previous month’s advance. The approximate monthly billing is expected to be Rs. 24 cr, beginning once all formalities are completed and the initial advance is received.
The buyer is DPIIT-registered, which allows them to issue DP02 certificates and receive supplies until Sunita Tools Limited obtains its own DPIIT registration. The company aims to start the first set of supplies as soon as possible.
Importantly, the agreement is non-exclusive, allowing Sunita Tools Limited to allocate a portion of its production to other customers if required. This milestone reflects Sunita Tools Limited’s long-term strategy to expand its international defence and aerospace business.
Commenting on the development, Mr. Sanjay Pandey, Chairman & Whole Time Director, said the deal represents a key inflection point for the company. He added that the agreement not only strengthens Sunita Tools’ global presence in supplying NATO-standard 155mm M107 shells but also fully leverages the company’s Line 1 and Line 2 production capacities. The deal is expected to open pathways to more NATO-standard customers.
“With our trusted team and efficient operations, we are committed to delivering supplies on time and ensuring the highest quality standards,” Mr. Pandey emphasised.
Sunita Tools Limited has over 36 years of experience in the Engineering and Mould Base industry, providing customised, high-precision solutions across multiple sectors. The company’s expertise includes Ground Plates, Mould Bases, and Precision CNC Machining, delivering critical components for industries such as Automotive, Aerospace, Defence, Electronics, Pharmaceutical, and Consumer Goods.
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