The share price of the small-cap company hit its 20 percent upper-circuit of Rs 623.75 per share from its previous close of Rs 519.80 after the company acquired assets worth Rs 450 crores through e-auction.
In the filing of Kalyani Steel Limited, the Company has been declared as a Successful Bidder for the Acquisition of Assets of Kamineni Steel and Power India Private Limited through the e-auction platform.
The acquisition cost Rs 450 crores, of which Rs 23 crores was paid as an Eastern Money Deposit for participation in the e-auction, and the balance is due by April 7, 2024.
According to the company’s financials, net revenue fell by 4 percent year on year, from Rs 500 crore in Q2FY23 to Rs 480 crore in Q2FY24. Their revenue fell by 3.4 percent sequentially from Rs 497 crore in Q1FY24 to the current levels.
In addition, the company’s net profit increased by 65 percent year on year, from Rs 35 crores in Q2FY23 to Rs 58 crores in Q2FY24. Their profit decreased by 5 percent on a quarterly basis from Rs 61 crore in Q1FY24 to the current levels.
Kalyani Steels Ltd is a small-cap company with a market capitalization of Rs 2,600 Crores, the share price of the company rose 73 percent in the last six months and 69 percent in the last year.
The company has a low price-to-earnings ratio of 10 compared to its peers, with a low debt-to-equity ratio of 0.34, a return on equity of 11 percent, a return on capital employed of 13 percent, and a dividend yield of 3.3 percent.
The promoter owns 65 percent of the company, the general public has 24 percent, foreign institutional investors have 3 percent, and domestic institutional investors have 8 percent.
Kalyani Steels Limited is a company that manufactures and sells iron and steel products. Forging and Engineering quality carbon and alloy steels are part of the Company’s segment.
Written by Sriram KV
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
