Multibagger Stock Hit The Upper Circuit As This Sponge Iron Company Received Order Worth Rs 1.94 Crore From Yokogawa India Ltd
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 59 per share.
Chaman Metallics Limited (CMNL) has awarded a contract to Yokogawa India Limited for the design, engineering, manufacture, testing, supply, and software development of a Distributed Control System (DCS) for its Captive Power Plant and CMA Sponge Iron Section under an expansion project. The domestic entity will complete the project within 15-20 days from the receipt of the initial advance payment. The total contract value, including taxes, is approximately Rs 1.94 crore.
On Wednesday, shares of Chaman Metallics Limited hit a 5 per cent upper circuit to an intraday high of Rs 122.85 per share from its previous closing of Rs 117. The stock’s 52-week high is Rs 135.40 and its 52-week low is Rs 59.
Chaman Metallics Limited is primarily engaged in the business of manufacturing and selling Direct Reduced Iron (i.e., sponge iron). Sponge iron is mainly used as a raw material for making steel in electric arc furnaces and induction furnaces.
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Talking about the financials, the company has a market cap of Rs 294.44 crore and has delivered good profit growth of 98.6 per cent CAGR over the last 5 years. In H2FY24, the net sales increased by 5 per cent to Rs 97 crore and net profit decreased by 56 per cent to Rs 4 crore compared to H1FY24. The net sales decreased by 17 per cent to Rs 189 crore and net profit decreased by 26 per cent to Rs 13 crore compared to FY23.
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 59 per share. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.