Share price of this micro-cap stock jumps 4.4 percent to Rs. 95 on BSE in the trading session of Tuesday, compared to its previous closing price of Rs. 91, after the company announced expansion plans. 

With a market capitalisation of Rs. 135.01 crores, the company has delivered positive returns of nearly 58.7 percent in the last one year. However, it has given negative returns of about 13.8 percent in the last six months and around 13.6 percent, so far in 2024. 

According to recent regulatory filings with the stock exchanges, Maiden Forgings Limited (MFL) has successfully acquired land nearly double the size of its current facilities, covering around 4 acres. The new manufacturing facility is expected to be operational by October this year. 

With this, the company aims to combine two of its existing facilities into one and acquire additional machinery to increase its capacity. The company currently operates plants at three distinct locations within Ghaziabad city. 

Following the completion of the transaction, the company aims to enhance its operational efficiencies, reduce costs, and anticipates being completely free of gross debt by the end of FY24-25 after finalising the transaction. 

This transaction allows the company to improve both its gross and net profit margins, while also enhancing its gross sales in the next financial years. 

Further, with the upcoming plant, the company aims to grow its product range and customer base, focusing on well-known industry clients. 

In terms of financials, the company’s revenue from operations grew by nearly 7.4 percent YoY from Rs. 108 crore in Q2 FY22-23 to Rs. 116 crore in Q2 FY23-24, accompanied by a constant net profit of Rs. 4 crores during the same period. 

Incorporated in 1988, Maiden Forgings Limited (MFL) is one of the leading manufacturers of a wide range of Bright Steel bars & wires, and has a complete in-house manufacturing facility including testing, pickling & annealing. 

The company specialises in all types of Bright steel bars, stainless steel bright bars and all grades of steel wires. 

Written by Shivani Singh


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