Share price of a company engaged in the business of manufacturing Ferro Alloy metals hit a new all-time high at Rs. 173.0 on Wednesday after the company board approved to install 4.5 MWP solar power plant.
With a market cap of Rs. 159 crore, shares of Jainam Ferro Alloys (I) Ltd. opened at Rs. 144.50 on February 7th, compared to its previous close of Rs. 136.85. The stock is currently trading at Rs. 150.50, up by 9.97 percent.
According to the recent filings on NSE, the Board approved Electromech Devices Manufacturing Company (EDMC) to set up the 4.5 MWP Captive Solar Power plant.
In addition, the Plant is expected to be operational by 31st March 2024 and will be located at the land situated at Village-Mehrumkala, Tehsil-Khairagarh, Dist-Rajnandgaon, Chattisgarh.
The cost of the project will be approximately Rs. 15 crores and will be met by Jainam Ferro Alloys (I) Ltd. from internal accruals and the current banking facility.
The power generated at the Solar Power Plant will be captively consumed to meet the power requirements of the company’s Ferro plant, lowering the high cost of power consumption which was previously purchased from the state electricity department or supplier.
The generation of Solar Energy will support the company’s green initiatives and reduce the carbon footprint.
In terms of financials, the revenue from operations of Jainam Ferro decreased by 40% from Rs. 165 crore in Q2 FY22-23 to Rs. 99 crore in Q2 FY23-24, accompanied by a decrease in net profit by 70% to Rs. 6 crore in Q2 FY22-23 from Rs. 20 crore in Q2 FY23-24.
As of December 2023, the Promoters’ holdings remain unchanged at 73.47 percent, whereas, the Public hold 26.53 percent of equity shares in the company.
Incorporated in 2014 as “Jainam Infraways Private Limited”, the name of the company was changed to “Jainam Infraways Limited” as it was converted into a Public Limited Company in 2018. Finally, in the same year, the name of the company was again changed from “Jainam Infraways Limited” to “Jainam Ferro Alloys (I) Limited”.
The company is currently manufacturing two types of Ferro Alloys namely, Ferro Manganese (FeMn) and Silico-manganese (SiMn), and is India’s leading manufacturer and exporter of niche value-added manganese alloys.
The products manufactured by the company are primarily used in the manufacturing of steel and foundry activities.
Written by Shivani Singh
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