Multibagger stock engaged in the business of manufacturing ductile iron pipes, ductile iron fittings, cast iron pipes, and many more jumped upto 5 percent in the day’s trade upon acquiring 525 acres of land for expanding operations.
With a market capitalization of Rs. 10,227 Crores, the shares of Electrosteel Castings Limited were trading at Rs. 172.15 per equity share, up 1.41 percent from its previous day’s close price of Rs. 169.75. It has delivered multibagger returns of 202 percent in a year.
In Relation to its earlier intimation, the Board of Directors of Electrosteel Castings Limited at their meeting held on 13 May 2024 had approved the proposal for setting up a Ductile Iron Pipes & Fittings Plant in Odisha, which would result in an increase in the production capacity of DI Pipes and fittings of the unit in phases and it would acquire approximately 500 acres of land parcel.
Following this it has signed a Term Sheet agreement with Saffron Resources Private Limited for the acquisition of around 525 acres of the said land to setup the Ductile Iron Pipes & Fittings Plant, following which it would increase its operations and generate more revenue
Electrosteel Castings Limited is engaged in the business of manufacturing ductile iron pipes, ductile iron fittings, and cast iron pipes. Its products also include ductile iron flange pipes, restrained joint pipes, cement, and ferroalloys.
Its revenue from operations grew by 7 percent from Rs. 1,872.37 Crores in Q4FY23 to Rs. 2,004.26 Crores in Q4FY24, accompanied by profits of Rs. 89.49 Crores to Rs. 227.15 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 15.6 percent and a return on capital employed (ROCE) of 16 percent. It has reported a debt-to-equity ratio of 0.46.
Written by: Bharath K.S
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