Back-to-back 52-week high: This small-cap multibagger stock becomes debt-free; makes prepayment of a loan worth Rs 234 crore!

This Industrial Products stock has given multibagger returns of more than 350 per cent in just 3 years

On June 12, 2023, the shares of Maharashtra Seamless Limited surged 4.93 per cent and hit a new 52-week high of Rs 498 per share on BSE. The intra-day high and low was Rs 495.65 per share and Rs 478.45 per share, respectively on BSE.  

In order to become debt-free, the company made a voluntary prepayment of a loan totaling Rs 234 crore from its internal accruals.  

The outstanding long-term loan was repaid on Friday, according to a stock exchange announcement. This is the manufacturer's second voluntary payoff of a long-term loan in the last eight months.  

Given its large order book and excellent cash position, the company paid down its debt totally through internal accruals.  

The key highlights of Q4FY23 (consolidated):     

1) Total sales stood at Rs 1,633 crore in Q4FY23, witnessing a surge of 14.35 per cent YoY basis as compared to Q4FY22.     

2) The operating profit for Q4FY23 is at Rs 314 crore, surge of 88 per cent on YoY basis as compared to Q4FY22.     

3) Net profit of Rs 373 crore for Q4FY23 is down by 5.8 per cent on YoY basis, compared to Q4FY22.     

The key highlights for FY23(consolidated):     

1) Total sales of Rs 5,716 crore, zoomed by 36.09 per cent on YoY basis over FY22.     

2) The EBIDTA level stood at Rs 1,011 crore, witnessing spike of 73.41 per cent on YoY basis as compared to FY22.     

3) PAT holds at Rs 768 crore, jumped 90 per cent on YoY basis from FY22.  

Maharashtra Seamless Limited, founded in 1988, is a manufacturer of steel pipes and tubes. It also generates electricity. Over the last five years, the company has generated good profit growth at a CAGR of 32.1 per cent. The stock has witnessed significant buying activity as it has given multibagger returns of more than 350 per cent in just 3 years.  

Investors must keep a close eye on this Small-Cap Industrial Products stock.