A recently listed company that manufactures induction heating and melting products was locked in the 5% upper circuit in the day’s trading as Ace Investor, Ashish Kacholia purchased a stake in it. 

With a market capitalization of Rs. 476 Crores, the shares of Megatherm Induction Limited was trading at Rs. 252.60, up 5% from its previous day’s close price of Rs. 240.60.

According to the data available in the NSE SME portal, Ashish Kacholia purchased 3,16,800 equity shares worth Rs. 7.13 crore at Rs. 224.96.

Its revenue from operations increased by 41.55 percent YoY from Rs. 187.83 crore in FY22 to Rs. 265.88 crore in FY23, with a recent H1FY24 of Rs. 146.87 crore. Its net profit increased by 1,171.94% YoY, from Rs. 1.10 crore in FY22 to Rs. 14 crore in FY23. 

Megatherm Induction Limited, founded in 2010, manufactures induction heating and melting products using electrical induction, such as induction melting furnaces and induction heating equipment.

The company was listed on February 5th, 2024, at Rs. 198, an 83.33% premium to the IPO price band of Rs. 108. It was oversubscribed by 196.11 times. The purpose of the issue was to meet working capital requirements as well as to fund capital expenditures for the construction of a factory shed and the installation of additional plant and machinery.

The company manufactures upstream and downstream equipment and machinery for steelworks, such as transformers, ladle refining furnaces, continuous casting machines, fume extraction services, etc.

They define their revenue from operations as manufacturing and the sale of induction, with manufacturing locations in India. In FY23, the revenue from operations in the geographical segment was 74.33% from India, up 31.39% YoY, and 25.67% from the rest of the world, up 82.35% YoY.

Written by: Santhosh


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