Shares of this small-cap steel company hit a fresh 52-week high today

The company has a market capitalisation of Rs 3220 crore and belongs to BSE small-cap index.

On January 16, the market traded in the red. The S&P BSE Sensex closed trading at 60,092.97, down 0.28 per cent, while NIFTY50 closed at 17891.65, down 0.36 per cent. Regarding sectoral performance, Power and Utilities were outperformers, while commodities and healthcare were among the Top Losers. Talking about stock-specific action, Surya Roshni Ltd was among the Top Gainers in BSE group ‘A’.   

The shares of Surya Roshni Ltd closed trading at Rs 592, up by more than 3.7 per cent from its previous close of Rs 570.75. The stock opened at Rs 574.4 and made an intraday high and low of Rs 597.05 and Rs 573.15, respectively. The company has a market capitalisation of Rs 3220 crore and belongs to BSE small cap index.     

 Surya Roshni Ltd operates into two business segments- Steel Pipe and Strips Segment and Lighting and Consumer Durables Segment. About 80 per cent of the revenue comes from Steel Pipe and Strips Segment, while the rest 20 per cent is from the other segment. It is India's top exporter of ERW (Electrical Resistance Welding) pipes, the top manufacturer of GI (Galvanised Iron) pipes, and 2nd largest player in the domestic lighting industry.     

In FY22, the company delivered excellent results. For FY22, the company’s revenue increased by 39 per cent, while its net profit jumped by 29.5 per cent, reported at Rs 204.92 crore.    

For the latest September quarter, the company reported total revenue of Rs 1984 crore with 2 per cent YoY growth. For the same quarter, the net profit increased significantly by 55 per cent YoY from Rs 44 crore in Q2 FY22 to Rs 68 crore.    

About the shareholding pattern, 62.96 per cent is owned by the promoters, 1.18 per cent by FIIs, 0.04 per cent by DIIs, 1.89 per cent by Surya Roshni Employees Welfare Trust, and the rest 33.93 per cent by non-institutional investors.     

The stock is trading at a TTM PE of 14.5x and has a 52-week high and low of Rs 597.05 and Rs 336.05, respectively.