During Monday’s trading session, the shares of one of the leading players involved in manufacturing and exporting of forged and machined components hit a 5 percent upper circuit at Rs. 36.79 on NSE, after the company announced raising Rs 86.4 crores through preferential issuance.
With a market cap of Rs. 381.4 crores, the shares of Tirupati Forge Limited opened in the green at Rs. 36.79, compared to its previous closing price of Rs. 35.04.
What’s the news:
According to the latest regulatory filings with the NSE, Tirupati Forge Limited successfully raised Rs. 86.4 crores through the issuance of preferential equity and warrants.
The issue was subscribed by multiple investors including leading family offices and high-net-worth individuals (HNIs).
With plans for large-scale capacity expansion, the company intends to utilize the proceeds primarily for capital expenditure, including land acquisition and plant & machinery, among other purposes.
The Chairman and Managing Director stated that the company aims to deploy this capital to support its capacity expansion and growth objectives.
Additionally, he noted that the goal is to double the forging capacity within the next two years. Along with the introduction of new higher-margin product offerings, the company seeks to take advantage of significant opportunities in both domestic and global markets over the coming years, targeting industry-leading margins.
Previous News:
On 30th July, the Board of Tirupati Forge announced receiving permission from Paschim Gujarat Vij Company Limited for the installation of a 4.8 MW Solar Power Plant Project. The solar project will be installed at a cost of ~Rs. 15 crore, with completion expected within the next six months.
The installation of the Power Project Plant aims to significantly reduce power consumption costs. With the installation of the 4.8 MW plant, an additional PAT of approximately Rs. 5 crore is anticipated starting next year.
Further, this project qualifies Tirupati Forge for government subsidies related to the loan taken for the installation of the solar power plant. By utilising this interest subsidy, it will be possible to enhance cost savings and ensure a rapid return on investment.
Financials:
The company experienced a significant growth in its revenue from operations, showing a year-on-year increase of around 40 percent from Rs. 20.8 crores in Q1 FY24 to Rs. 29 crores in Q1 FY25.
Similarly, its net profit increased during the same period from Rs. 1.14 crores to Rs. 2.6 crores, representing a growth of nearly 128 percent YoY.
Stock Performance
The stock has delivered multibagger returns of nearly 237.5 percent in one year, and around 93.6 percent returns in the last six months. So far in 2024, the shares of Tirupati Forge have given about 122.3 percent of multibagger returns.
About the company:
Incorporated in 2012, Tirupati Forge Limited is engaged in the business of manufacturing and exporting of forged and machined components offering a diversified portfolio of products.
With a strong demand outlook for forged products in India and globally, the company is aiming to double its manufacturing capacity and expand its customer segments in the future.
Written by Shivani Singh
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