Metal stock jumps 6% after NCLT approved the corporate debtor’s resolution plan 

On Thursday, shares of India’s largest metal castings producer gained 6 percent to Rs 479 per share on NSE after the National Company Law Tribunal, New Delhi Bench accepted the company’s resolution plan for corporate debtor Oliver Engineering. 

At 12:10 p.m., Kirloskar Ferrous Industries Ltd shares were trading at Rs 477 per share, up Rs 25 or 5.62 percent from the previous close price on the exchange. The company has a market capitalization of Rs 6,616 crore. 

According to Kirloskar Ferrous Industries’ regulatory filing, the National firm Law Tribunal, New Delhi Bench, approved a resolution plan for corporate debtor Oliver Engineering on September 12, which the company received on September 13. Oliver Engineering is a ferrous casting and machining company with a production location in Punjab. 

The company’s revenue has increased by 2 percent year on year, from Rs 949 crore in Q1FY23 to Rs 926 crore in Q1FY24. During the same timeframe, Net profit has declined by 36 percent from Rs 83 crore to Rs 53 crore. 

The company share has gained 30 percent on a year-to-date basis and 78 percent in a year. 

In the most recent fiscal year’s company’s profitability metric shows a return on equity of 21.67 percent and a return on capital employed of 26.45 percent. 

According to the latest shareholding pattern, the promoters hold 56.61 percent of the company, while domestic institutional investors hold 10.74 percent and retail investors hold 30.96 percent.

Kirloskar Ferrous Industries is a market leader in India for manufacturing critical and intricate grey iron castings and quality pig iron. 

Written by Omkar Chitnis