The shares of one of the leading manufacturers of Superalloy for defence sector rose 3.7 percent to an intraday high price of Rs 455 apiece on Thursday after the company bagged a new order worth Rs 139 crore.
At 11:30 a.m.,Mishra Dhatu Nigam Ltd (Midhani) shares were trading at Rs 443.70 a share on the National Stock Exchange, up Rs 5.20 or 1.19 percent and the company has a market capitalization of Rs 8,331 crores.
According to the company’s filing, Mishra Dhatu Nigam Limited (MIDHANI) has received an order totaling Rs. 139 crore. This contributes to MIDHANI’s current open order position, which stands at approximately Rs. 1,830 crores. However, the company has chosen not to disclose the specific purpose of this order.
Mishra Dhatu Nigam Ltd (MIDHANI) is a Miniratna Category-I firm under the Ministry of Defence.It produces superalloys, titanium, special purpose steel, and other specialty metals for application in aerospace, defence, and nuclear energy.
The company is engaged in manufacturing and supplying high-technology metals, alloys, and components to esteemed clients such as DRDO, ISRO, HAL, the Department of Atomic Energy, and the Ordnance Factory Board.
In accordance with the current shareholding structure, the promoters hold a 74 percent stake in the company, with domestic institutional investors owning 11.04 percent and retail investors holding 13.88 percent.
The company witnessed a 9 percent year-on-year increase in revenue, from Rs 231 crore in Q3FY23 to Rs 252 crore in Q3FY24. However, there was a 68 percent decline in net profit during the same period, from Rs 38 crore to Rs 12 crore.
The company’s share price has surged from Rs 204 to Rs 445, delivering impressive returns of 117 percent. Consequently, an investor who purchased 1 lakh shares in the company a year ago would now see their holdings valued at 2.77 lakhs.
In 2023, the company entered into 11 MoUs with entities like HAL, Hindustan Shipyard, and others, aiming to enhance its capabilities in aerospace and naval materials development and manufacturing.
Furthermore, the company has been actively supplying critical nickel-based alloys and specialty materials to prominent global aerospace firms such as SpaceX and Rolls Royce.
Written by Omkar Chitnis
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