This small-cap steel stock engaged in manufacturing specialty steels, industrial machinery, and EOT cranes, serving sectors like automotive, construction, and engineering with high-performance materials and solutions, jumped 3 percent after the NCLT approved the demerger of its Stainless Steel Cold Finished Bars and Wires business division.
Stock Price Movement
With a market capitalization of Rs. 1,450.88 crores, the share of Mukand Limited has reached an intraday high of Rs. 103.60 per equity share, rising nearly 2.72 percent from its previous day’s close price of Rs. 100.86. Since then, the stock has retreated and is currently trading at Rs. 100.41 per equity share.
What Happened
Mukand Limited has received approval from NCLT for a Scheme of Arrangement involving the demerger of its wholly owned subsidiary, Mukand Sumi Metal Processing Limited (MSMPL). Under this scheme, the Stainless Steel Cold Finished Bars and Wires business of MSMPL will be transferred to Mukand Limited, contributing Rs. 655.23 crores (12.55 percent) of revenue.
This strategic move aims to streamline business operations, improve management focus, reduce redundancy, and enhance shareholder value. It is expected to generate cost savings, operational synergies, and long-term growth by consolidating similar businesses under one corporate structure.
Also read: Stock under ₹80 jumps 6% after company to consider buyback, bonus and stock split
Product Offerings
Mukand Limited offers a diverse range of products, including stainless steel and alloy steel billets, hot rolled bars for export, steel castings, structural components, EOT cranes, and various industrial machinery and equipment for engineering and manufacturing applications.
Recent quarter results
Mukand Limited’s revenue has increased from Rs. 1,177 crore in Q3 FY24 to Rs. 1,262 crore in Q3 FY25, which has grown by 7.22 percent. The net profit has reduced by 21.05 percent from Rs. 19 crore in Q3 FY24 to Rs. 15 crore in Q3 FY25.
Company Overview
Mukand Limited was established in 1937 and is a leading manufacturer of specialty steel products, industrial machinery, and EOT cranes. The company serves sectors like automotive, infrastructure, and engineering with stainless steel, alloy steel, and customized industrial equipment solutions.
Written By – Nikhil Naik
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