Shares of this metal stock under the ‘small-cap’ category jumped up to 4 percent on Monday after it signed an agreement for a 43.75 Megawatt (MW) AC captive solar plant with a Tata Group subsidiary company.
With a market capitalization of Rs 2,339.38 crores, the stocks of Mukand Limited opened their trading hour on Monday at Rs 158.40 and currently trades at Rs 162. The company’s scrip witnessed an intra-day high of Rs 163.10 indicating a gain of around 4 percent as compared to the previous close of Rs 157.05 apiece.
Such bullish sentiments in the stock prices were observed after the company, through a regulatory filing with the exchange, intimated that it has signed a Power Delivery Agreement (PDA) with Tata Power Renewable Energy Limited (TPREL), a Tata Group subsidiary company, for a 43.75 Megawatt (MW) AC captive solar plant.
The plant, located at Jamkhed in Maharashtra, will generate power of 99.82 Million units (MUs) annually. The clean energy project is expected to offset 54,687 Metric Tons (MTs) of CO2 emissions per year.
Scheduled for commissioning by March 2024, the plant aims to meet the energy requirements of Mukand Limited and contribute towards making its steel manufacturing processes & production greener.
During the past couple of financial years, the company has reported an increase in operating revenues from Rs 4,642.97 crores during FY21-22 to Rs 5,567.6 crores during FY22-23, and, the after-tax profits have stayed stable at levels of approximately Rs 175 crores.
The latest shareholding pattern data portrays the company’s Promoters holding a 74.70 percent stake followed by the Public (retail) investors holding a 24.05 percent stake in the company.
Mukand Limited, a Bajaj group company, is an India-based manufacturer of stainless as well as alloy steel long products. The company’s product portfolio comprises wire rods, billets, bright bars, cold-finished wires, etc.
Written by Amit Madnani
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