The shares of the coated metal manufacturer gained up to 5 percent after the company achieved a milestone by receiving a contract worth Rs 200 crore from a European client.
Manaksia Coated Metals & Industries Ltd has a market capitalization of Rs 518.77 crore, the shares were trading at Rs 69.85 per share, increasing around 5 percent as compared to the previous closing price of Rs 66.60 apiece.
Reason for rise:-
The company shares have seen bullish movement after Manaksia Coated Metals & Industries Ltd signed a contract of USD 24 million (approx. ₹200 crore) with a prominent European client. The deal covers the supply of 20,000 metric tons of premium pre-painted steel coils, Alu Zinc-coated steel coils, and galvanized steel products for the next 12 months.
Additionally, the agreement has the potential to become a regular order, providing MCMIL with a consistent revenue stream in the future. This would enhance MCMIL’s production capabilities and worldwide competitiveness by fully using the increased capacity from its Continuous Galvanizing Line (CGL) modifications, which are set to be completed in Q4-FY2025.
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Moreover, MCMIL is strengthening its presence in Europe by securing top-tier clients, boosting export revenue, and enhancing its global competitiveness with cutting-edge production upgrades. This contract opens long-term opportunities, positioning MCMIL to meet the growing demand for high-quality, corrosion-resistant coated steel products.
Financial Analysis:-
Looking forward to the company’s financial condition, revenue magnified by 13 percent from Rs 171.70 crore in Q1FY24 to 193.78 crore in Q1FY25. During the same period, net profits zoomed multifold times by 1500 percent from Rs 0.19 crore to Rs 3.04 crore.
Sales Breakdown:-
The company’s domestic sales comprised 74% of total volume at 18,888 metric tons, while exports accounted for 25.93% with 5,754 tons. Pre-painted steel represented 76% of sales volume, generating ₹151.17 crores, while galvanized steel comprised 25% and earned ₹41.66 crores.
Expansion Initiatives:-
The company plans to expand color-coated steel capacity from 86,000 to 190,000 tons by FY ’26, and galvanized steel from 132,000 to 180,000 tons by Q3 FY ’25. Additionally, it aims for 300,000 metric tons of cold-rolled steel by FY ’27, enhancing corrosion resistance.
Margin Guidance:-
The company expects approximately 3% EBITDA growth post-technology upgrades in Q4 FY ’25, with pre-painted steel projected to achieve an 8% EBITDA margin, surpassing galvanized steel’s 5%. The introduction of aluminum zinc-coated steel (Aluzinc) is anticipated to enhance margins and profitability further.
Market Insights:-
Strong demand for value-added products is fueling growth, particularly in pre-painted steel production and sales. The company anticipates 17-20% volume growth in FY ’25, with the potential for 35-40% growth in FY ’26 driven by capacity enhancements and increased market focus.
Company Profile:-
Manaksia Coated Metals & Industries Limited is an Indian company that manufactures and exports coated metal products as well as fast-moving consumer goods (FMCG). The company produces color-coated galvanized steel and plain galvanized steel in coil and sheet form.
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Written by:- Abhishek Singh
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