This Smallcap Steel stock is in focus as its share hit the 20 percent Upper Circuit mark following the company’s announcement of its Rs. 2,000 Capex, Q4 results, and dividend
Share Price Movement
With a market capitalization of Rs. 2,035 Crore, the stock of Vardhman Special Steels opened at Rs. 207.50, the same level as yesterday’s close; however, after opening, it made a high of Rs. 249, hitting the 20 percent Upper circuit mark. Additionally, the Yearly return for the stock is -4.50 percent, and the past 5-year return is an impressive 1,024 percent.
Q4 FY25 Financial Highlights
The company reported a 2.50 percent YoY decrease in revenue from Rs. 439 Crore in Q4FY24 to Rs. 428 Crore in Q4FY25. On a QoQ basis, the company reported a marginal increase of 0.23 percent in revenue from Rs. 427 Crore in the previous quarter.
Their Net profit saw a decrease of 39.39 percent YoY from Rs. 33 Crore to Rs. 20 Crore for the same period. On a QoQ basis, the company reported a decrease of 4.76 percent in Net profit from Rs. 21 Crore in the previous quarter. The board also recommended a dividend of Rs. 3 per equity share, which will be subject to approval in the Annual General Meeting (AGM)
Also read: Smallcap Infra stock jumps 5% after securing ₹569 Cr order from Central Railways
CAPEX Update
The company announced that it will be setting up a new Greenfield steel plant in the state of Punjab for the manufacturing of special and alloy steel with a planned capacity of Rs. 5,00,000 MT per annum with an estimated Capex of Rs. 2,000 Crore, which will be funded through mix of internal accruals, equity, and debt.
The New Capacity is expected to be commissioned by FY30. The plant will also address the capacity shortage for the existing product lines after 2028. They also stated that the plant is expected to reduce the overall cost of steel manufacturing and that they aim to diversify into new products.
About the Company
Vardhman Special Steels Limited is a prominent player in the Indian special and alloy steels segment, catering primarily to the automotive sector. Headquartered in Ludhiana, Punjab, the company is part of the Vardhman Group, a diversified industrial conglomerate. Vardhman Special Steels manufactures high-quality steel bars and rods, supplying to leading automotive manufacturers and tier-1 suppliers across India and internationally.
Written By Abhishek Das
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