A leading manufacturer of industrial induction heating systems, renowned for their innovative metallurgical solutions, has marked a significant milestone in their expansion journey. The company recently secured a Rs 3.25 crore subsidy from MEITY, paving the way for enhanced production of specialised industrial equipment, including melting furnaces and heat treatment units.
Share Price Movement
The share price of Megatherm Induction Limited went up 2.39 percent to Rs. 308.75 per share on Monday, an increase from its previous close of Rs. 301.55 per share. The market capitalisation now stands at approximately Rs. 578 crore as of February 03, 2025.
What Happened
Has received a subsidy of an amount of Rs 3.25 crore from the Ministry of Electronics and Information Technology (MEITY). Items proposed to be manufactured include Induction Melting Furnaces, Induction Mass Heaters, Induction Heat Treatment Units, and Induction Tube Welders.
Financial Highlights
In FY2024, the company reported revenue of Rs. 306 crore, reflecting a 15% growth from Rs. 266 crore in FY2023. Profits increased to Rs. 21 crore in FY2024, marking a 50% rise from Rs. 14 crore in the previous year. Over the last three years, the company achieved a 41% profit CAGR, an 89% sales CAGR, and a 22% ROE CAGR.
Competitors
Megatherm Induction Ltd. competes in the engineering sector with Pavna Industries, Josts Engineering, Revathi Equipments Ltd., Hercules Hoists, Zodiac Energy, United Drilling Tools, Sahaj Solar, and Artson Engineering.
Megatherm Induction is currently trading at a P/E of 25.32, which is in line with the industry P/E of 37.31.
Market Outlook
The Indian foundry industry is set for strong growth, expected to reach USD 31.77 billion by 2029 at a 10.3% CAGR. Key drivers include rising industrialisation, increased vehicle production, and government infrastructure spending. Challenges like raw material cost fluctuations have impacted small foundries, but technological investments aim to improve efficiency and profitability. With India being the world’s second-largest casting producer, the industry is poised for expansion, particularly in the automobile sector, making it a vital part of the country’s manufacturing ecosystem.
Written By Fazal Ul Vahab C H
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