During the Tuesday trading session, the shares of one of the Leading manufacturers and exporters of coated metal products and fast-moving consumer goods (FMCG) in India hits 5% upper circuit in the days trade upon declaring fund raise of Rs. 135 crores and expansion plans
Price action
With the market capitalization of Rs. 577 crores on Tuesday, the shares of Manakshia coated metals and industries Ltd hit a 5% upper circuit at Rs.81.67 compared to its previous closing price of Rs.77.79.
What happened
The company has announced the approval for a preferential warrant issuance aimed at raising ₹134.55 crore during its board meeting, and issuing 2,07,00,000 warrants, priced at ₹65 each, for the same.
The funds raised will be used for a technology upgrade that will enable the company to produce Alu-Zinc Coated Steel products that will increase production capacity from 132,000 MTPA to 180,000 MTPA, boosting output by 36% and driving higher revenue.
The planned capital expenditure also includes a new steel coil coating line, which will expand the capacity for Pre-painted Steel from 86,000 MTPA to 236,000 MTPA. Additionally, a portion will be allocated to optimize the working capital cycle and establish a captive solar power plant.
About the company
Manaksia Coated Metals & Industries Limited (MCMIL) was established on March 25th, 2010. It is a leading manufacturer and exporter of coated metal products and FMCG items. The company produces Colour Coated Galvanised Steel and Plain Galvanised Steel in both coil and sheet forms all of the company’s value-added steel products are produced at its facility in Kutch, Gujarat.
The company’s Galvanised and Colour Coated Steel products are modern building materials, commonly used in a wide range of industries including construction, automotive, appliances, and general engineering.
Financials
The company’s revenue declined by 10 percent, from Rs 194.46 crore in September FY23 to Rs 174.91 crore in September FY24. Meanwhile, Net profit saw an increase, rising from Rs 2.09 crore in September FY23 to profit of Rs 2.43 crore in September FY24 during the period.
Key Financial ratios
Manaksia Coated Metals & Industries Limited (MCMIL) has an impressive Return on Equity (RoE) of 9.18 percent and a Return on Capital Employed (RoCE) of 14.16 percent and Furthermore, the company’s debt-to-equity ratio is 1.25.
Stock Performance
The stock has provided impressive multibagger returns of about 158 percent over the year, along with a remarkable continuous upward trend for the past six days, with an impressive 28 percent rise in returns over this period, it has continued to perform strongly.
Written by Sridhar J
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