Mishra Dhatu Nigam Ltd., incorporated in the year 1973, is a Mid Cap company (having a market cap of Rs 3906.04 Crore) operating in Metals – Ferrous sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 353.83 Crore, up 81.89 % from last quarter Total Income of Rs 194.53 Crore and up 62.44 % from last year same quarter Total Income of Rs 217.82 Crore. Company reported net profit after tax of Rs 74.62 Crore in latest quarter.
Investment Rationale
Low current utilisation and higher value blend through supplies to ISRO and defence can help increase Midhani’s topline meaningfully over the next 2-3 years. The brokerage expects RoCE to cross 20% as topline accretion takes shape. Capex remains limited; improvement in working capital and moderate capex will also help generate FCF.
Promoter/FII Holdings
Promoters held 74 per cent stake in the company as of March 31, 2021, while FIIs held 0.5 per cent, DIIs 14.1 per cent and public and others 11.4 per cent.
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