The shares of Micro-Cap company, specializing in the manufacturing of metal forming, particularly hot, warm, and cold forging, jumped upto 2 percent upon declaring Q4 results with a 214 percent rise in Profit Year on Year (YoY).
With a market capitalization of Rs. 287.40 crores on Wednesday, the shares of Kalyani Forge Ltd jumped upto 1.7 percent, making a high of Rs. 803.70 per share compared to its previous closing price of Rs. 789.90 per share.
Kalyani Forge Ltd, engaged in providing forged, machined, and assembled products to various industries, has announced its Q4 results as follows. Its Revenue from operations rose by 4 percent YoY from Rs. 56.8 Crores in Q4FY24 to Rs. 59.0 Crores in Q4FY25, and it rose by 0.6 percent QoQ from Rs. 58.6 Crores in Q3FY25 to Rs. 59.0 Crores in Q4FY25.
Its Net Profit YoY rose by 214 percent from Rs. 0.71 Crores in Q4FY24 to Rs. 2.23 Crores in Q4FY25, and it rose by 22 percent QoQ from a profit of Rs. 1.82 Crores in Q3FY25 to Rs. 2.23 Crores in Q4FY25.
The earnings per share (EPS) for the quarter stood at Rs. 6.12, compared to Rs. 5.00 in the previous quarter, and it has a PEG ratio of 0.06, indicating the stock may be undervalued relative to its growth potential. It also maintains a low debt-to-equity ratio of 0.76, showing controlled financial leverage.
Along with it, the Board of Directors of the company has recommended a dividend of Rs. 4.00 per equity share, which amounts to 40 percent of the nominal value of Rs.10 per share. This proposed dividend is subject to approval at the upcoming Annual General Meeting.
FY26-Plans and Others
Kalyani Forge Ltd’s game plan for FY26 focuses on 13 high-impact “Vriddhi Council” initiatives aimed at driving growth and expanding EBITDA. Key priorities include machine and process optimization, cost reduction in purchasing and power, productivity improvements, and reducing the cost of poor quality.
The company also plans to implement new business SOPs worth Rs. 50 crore, execute Rs. 25 crore in capex projects, digitize compliance management, enhance ERP-SAP controls, and further develop the KSCADA portal with Kalyani Studio.
Written by Sridhar J
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