Shares of this steel stock under Mr. Mukul Agrawal’s portfolio jumped approximately 10 percent in Monday’s trading session after the company successfully received multiple orders from ‘Oil & Natural Gas Company’ (ONGC) totaling Rs 343.72 crores. In the past month, the company’s stock has gained more than 25 percent for its holders.
With a market capitalization of Rs 3,139.04 crores, the stocks of ISMT Limited started their trading session on Monday at Rs 100.99 and currently trade at Rs 104.46, gaining around 10 percent compared to the previous close of Rs 96.27 apiece.
Such sharp movements in the share price were witnessed today after the company, via a recent filing with the Bombay Stock Exchange (BSE), intimated about the receipt of multiple orders from Oil & Natural Gas Corporation (ONGC) totaling Rs 343.72 crores.
The abovementioned order pertains to the supply of regular ‘casing pipes’ as per the terms & conditions mentioned in the contract signed. The execution period of the order is for a period of roughly one year ending on 13th February 2025.
According to the latest shareholding data available, Mr. Mukul Agrawal, one of the well-known ace investors based in India, owns a stake in ISMT Limited. As of the December 2023 quarter, he holds around 40 lakh shares of the steel company equivalent to a 1.33 percent stake.
During the recent financial quarters, the company’s basic business parameters, viz, its operating revenues as well as after-tax profits, showed movements in opposing directions.
The former, on one end, slipped from Rs 749 crores during Q2FY24 to Rs 642 crores during Q3FY24, and the latter, keeping the timeframe the same, showing a contrast move, jumped from Rs 51 crores to Rs 62 crores.
In addition to the above, the company’s ratio analysis portrays the return ratios, i.e., the return on equity (RoE) as well as the return on capital employed (RoCE), to be reported at decent numbers with the former at 6.78 percent and the latter at 11.47 percent.
ISMT Limited is engaged in manufacturing steel & seamless hallows, tubes, and tubular products for various sectors including automotive, mining, energy, and many others. It
produces both, hot as well as cold-finished seamless tubes, and the same are used in the manufacturing of auto-components, bearing races, drill rods, etc.
Written by Amit Madnani
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