Multibagger Penny Stock Under Rs 85 Hit Upper Circuit & 52-Week High After Company Announced to Raise Funds Via Preferential Issue of Equity Warrants
The stock gave multibagger returns of 191.7 per cent from its 52-week low of Rs 28 per share and a whopping 1,900 per cent in 5 years.
Manaksia Coated Metals & Industries Limited (MCMIL), A leading manufacturer and exporter of high-quality coated metal products has announced the approval of a preferential warrant issue to raise Rs 134.55 crore. The board of directors approved the issuance of 2,07,00,000 warrants at Rs 65 per warrant during its meeting on December 02, 2024. This move will support the company’s ambitious plans for capacity expansion and a major technology upgrade.
The funds raised will be utilized to undertake a technology upgrade project whereby the company will be transitioning to the production capability of making Alu-Zinc Costed Steel products. The production capacity will be enhanced from 132,000 MTPA to 180,000 MTPA enabling a 36 per cent increase in output and corresponding revenue. The CAPEX being planned by the company also includes a forward integration project whereby the company would be investing in a new and state-of-the-art steel coil coating line which would catapult the capacity of Pre-painted Steel from 86,000MTPA to 236,000MTPA.
Additionally, a portion will be allocated to optimize the working capital cycle and establish a captive solar power plant in a phased manner, reflecting the company’s commitment to sustainable and energy-efficient practices. This strategic move will benefit the company by moving to a more value-added and premium product enabling higher margins along with significant growth in production capacity. With the expanded capacity and focus on energy efficiency, the company aims to better meet increasing market demand while reducing its carbon footprint.
MCMIL's recent USD 24 million contract with a leading European client marks a significant milestone in its global expansion strategy. This agreement underscores the company's commitment to international markets and its ability to deliver high-quality, value-added products. The contract not only boosts MCMIL's export revenue but also solidifies its position as a preferred supplier in the European market.
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About Manaksia Coated Metals & Industries Limited
Manaksia Coated Metals & Industries Limited (MCMIL) is a prominent player in the manufacturing and export of high-quality coated metal products. Their product range, encompassing Pre-painted Galvanised Steel and Galvanised Steel in coil and sheet forms, finds extensive application in sectors like construction, automotive, appliances, and general engineering. Strategically located in Kutch, Gujarat, MCMIL's state-of-the-art facility leverages its proximity to key ports for efficient domestic and international logistics. With a robust network of two manufacturing plants, four branch offices, and three stock yards and service centres across India, the company is dedicated to providing exceptional products and services. MCMIL's commitment to innovation, quality, and customer satisfaction has solidified its position as a leading provider of value-added steel solutions that cater to global market requirements.
On Tuesday, shares of MCMIL jumped 5 per cent upper circuit and made a new 52-week high of Rs 81.67 per share from its previous closing of Rs 77.79 per share. The company has a market cap of over Rs 600 crore. The stock gave multibagger returns of 191.7 per cent from its 52-week low of Rs 28 per share and a whopping 1,900 per cent in 5 years. Investors should keep an eye on this penny stock.
Disclaimer: The article is for informational purposes only and not investment advice.