The Micro-Cap company, specializing in the manufacturing of auto components and engineering die-cast components, jumped upto 6 percent following the announcement of the Amalgamation with Palco Recycle Industries Limited.
With a market capitalization of Rs. 82.00 crores on Friday, the shares of Palco Metals Limited jumped upto 6.3 percent, making a high of Rs. 206.90 compared to its previous closing price of Rs. 194.50 per share.
What Happened
Palco Metals Limited, engaged in the manufacturing of auto components and engineering die-cast components, has submitted revised voting results for its 1st Extra-Ordinary General Meeting (EGM) held on April 30, 2025, where the Scheme of Amalgamation with Palco Recycle Industries Limited was approved.
The company also clarified that the revised results were due to an error in counting the number of shareholders and voting, which affected the initial results. The resolution was passed unanimously, with 100 percent of the votes in favor from both the Promoter group and the Public shareholders.
The scrutiny of votes was handled by Punit Santoshkumar Lath, a Company Secretary. Later, the voting results were confirmed, and the resolution was passed with 75.34% of the total votes polled in favor, ensuring the amalgamation move was approved without opposition.
About the Company
Palco Metals Limited is an Indian company primarily involved in the manufacturing and supply of a range of metal products. They specialize in producing high-quality metals like aluminum, copper, and brass, which are used in various industries, including automotive, construction, and electrical.
Key Financials
The company’s revenue rose by 17 percent from Rs. 52.88 crore to Rs. 61.91 crore in Q3FY24-25. Meanwhile, Net profit declined from Rs. 3.72 crore to Rs. 1.27 crore during the same period.
The company has a P/E ratio of 11.81, significantly lower than the industry average of 53.95, indicating potential undervaluation. Its PEG ratio of 0.21 further supports this view. With a low debt-to-equity ratio of 0.44 and over 65 percent promoter shareholding, the company shows strong financial stability and investor confidence.
Written by Sridhar J
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