Why are shares of Modison Metals outperforming?

The shares of Modison Metals gained by more than 3 per cent on Monday when BSE Sensex tanked by ~950 points. Nifty closed near 16900 levels, slipping by 284 points.

Modison Metals on November 3 announced via exchange filing that the company board has approved to enter MoU with RENERA and LDrive LLC (L-Charge) respectively for trading, assembly & manufacturing of Battery Energy Storage System (BESS) and Electric Vehicle (EV) charging infrastructure in India. BESS technology enables energy storage systems for emergency power supply, renewable energy resources and smoothing of load demand on the electricity grid. EV charging infrastructure enables rapid adoption of Electric Vehicles in a seamless manner.

BESS and EV charging infrastructure are growth sectors globally and in India.

The board decision to approve the business expansion plan into Battery Energy Storage System and EV charging infrastructure is the reason behind the positive sentiment in the stock.

The shares of Modison Metals are up by more than 8 per cent in one month alone. In the similar period BSE Sensex is down by more than 6 per cent.

Modison Metals is a Mumbai-based electrical contact manufacturer. Switchgears manufacturers in India and around the world use Modison Metals products. Modison Metals is one of the few firms in the world that manufactures electrical contact materials and finished contacts for all segments of the switchgear industry, including Low, Medium, High, and Extra High Voltage.