This Industrial Iron & Steel Products stock jumped 5% on Monday within the first hour of markets open, hitting the Upper Circuit for the second day in a row. The stock rallied with close to 90% more than yesterday’s volume and nearly 3x weekly average volumes.
The stock is also experiencing strong technical trends, indicated by the fact that it is close to a strong resistance line and has seen a golden crossover last month and has risen significantly since.
Rudra Global Infra Products Ltd (“Rudra”) said on a filing dated 26th August 2023, that actions under consideration and pending approval in the upcoming AGM on 5th September 2023 are:
a) To consider Split/Sub-division of Equity shares of the Company
b) To increase in authorized share capital of the Company and subsequent alteration to the Memorandum of Association of the Company
c) To recommend and approve Issue of Bonus shares to the equity shareholders of the Company
The company, although has a market cap of just over Rs. 985 crores has reported impressive performance over the last few FYs and quarters. The company’s revenue has risen to Rs. 452 crore in FY2023 from Rs. 351 crore in FY2022 and Rs. 238 crore in FY2021. In the same periods the Net profits were Rs. 14 crore, Rs. 8 crore and a loss of 30 crore respectively.
This represents considerable margin accretion in the bottom line from -13% to 2% and 3% in a 3 year period. In the June quarter of FY2024, the company reported 44% increase in top-line and a 15% increase to net profit.
The company shareholding remains stable as well, with promoters holding 73% and unpledged, the rest being public float. Rudra engages in manufacturing of premium TMT bars and billets that are sold under the brand name Rudra TMX.
Written by Sandeep R
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