Mishra Dhatu Nigam zooms 20%, hits new lifetime high on robust Q3 results

Shares of Mishra Dhatu Nigam Limited (MIDHANI) rallied 20 per cent and hit a new high of Rs 216 on the BSE on Monday in an otherwise subdued market, on the back of heavy volumes.

The stock of the state-owned manufacturers of special steels superalloys and titanium alloys surpassed its previous high of Rs 187, recorded on Friday, February 14, 2020.

The trading volumes on the counter rose over nine times with a combined 6.99 million shares changing hands on the NSE and BSE till 11:22 am. There were pending buy orders for 285,624 shares on both the exchanges.

In the past three days, MIDHANI's stock price has zoomed 31 per cent after reporting a more than three-fold jump in net profit at Rs 60.50 crore in December 2019 quarter (Q3FY20). It had posted profit of Rs 16.90 crore in the year-ago quarter. In comparison, the S&P BSE Sensex was down 1 per cent during the same period.

The company’s net turnover during the quarter under review grew 35 per cent year-on-year (YoY) at Rs 206.9 crore, as compared to Rs 153.2 crore in the corresponding quarter of previous fiscal. The company's profit before tax (PBT) jumped 155 per cent to Rs 58.45 crore on YoY basis.

The stabilisation of 1500T Forge press and other recent capital investments coupled with a healthy order booking, particularly from space sector, has enabled the mini-ratna defence public sector undertaking MIDHANI to achieve healthy turnover during the quarter.

As on January 1, 2020, the company’s order book position stood at Rs 1,776 crore.

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