Small Cap stock engaged in the business of manufacture and sale of Iron and Steel Products jumped 8 percent in the day’s trade upon signing an MoU worth Rs. 11,750 Crores with the Government of Odisha.
With a market capitalization of Rs. 3,724 Crores, the shares of Kalyani Steels Limited were trading at Rs. 853.15, up 4.52 percent from its previous day’s close price of Rs. 816.25. It has delivered multibagger returns of 163 percent in a year.
Kalyani Steels Limited has signed a Memorandum of Understanding (MoU) with the government of Odisha, to set up a 0.7 MTPA integrated advanced speciality Steel & Automotive Components Manufacturing Complex with an estimated investment of Rs. 6,626 Crores.
In addition to this, it is setting up Phase 1 of Integrated Titanium Metal / Alloy and Aerospace & Defense Components Manufacturing Plant with a capacity of 10,000 TPA, with an estimated investment of Rs. 5,124 Crores
Kalyan Steels Limited which is part of the Famous Indian Conglomerate the Kalyani Group, is engaged in the business of manufacture and sale of Iron and Steel Products.
Its product portfolio consists of consists of camshafts, connecting rods, gears, transmission shafts, axle beams, steering knuckles, etc for Automotive Industry, round casts for Seamless Tube Industry, rolled bars for Engineering Applications and many more.
Its revenue from operations grew by 11.33 percent from Rs. 1,706 Crores in FY22 to Rs. 1,899 Crores in FY23, accompanied by profits of Rs. 243 Crores to Rs.167 Crores.
It has reported a return on equity (ROE) of 11.7 percent and a return on capital employed (ROCE) of 13.3 percent, it is making decent returns on its equity and capital employed.
Written by: Bharath K.S
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