This PSU from the manufacturing sector sells specialised products in aerospace and defence space

The outlook for the company looks good in light of the Atmanirbhar Bharat initiative and the Government’s focus on the defence sector.

On January 10, the market traded in the red. The S&P BSE Sensex closed trading at 60115, 1.04 per cent down, while NIFTY50 is down 1.03 per cent and trading at 17914.15. Regarding sectoral performance, Auto and Healthcare were outperformers, while Telecom and Banks were the Top Losers on the day. In stock-specific action, Mishra Dhatu Nigam was among the Top Gainers in BSE group ‘A’. 

The shares of Mishra Dhatu Nigam closed trading at Rs 223.45, 3.6 per cent higher on the day. The stock opened at Rs 215 and made an intraday high and low of Rs 224.6 and Rs 215, respectively. 

Mishra Dhatu Nigam manufactures superalloys, titanium, special-purpose steel and other special metals which are generally used in defence and aerospace applications. It is PSU where the central government controls 74 per cent of the company’s stake. 

The government established Mishra Dhatu Nigam Ltd in 1974 primarily to achieve self-sufficiency in the production of special metals and superalloys critical to the growth of the defence, space, and atomic energy sectors. 

For FY22, the company reported a revenue of Rs 859 crore and generated a net profit of Rs 176 crore, while maintaining a healthy net profit margin of 20 per cent. The company is available to achieve high profitability due to its highly customised value-added offerings. 

As per FY22, the company has ROE and ROCE of 15.6 per cent and 19.4 per cent, respectively. It also has a healthy dividend yield of 1.38 per cent. 

About the shareholding pattern, 74 per cent is owned by the Central government, 15.57 per cent by DIIs, 0.52 per cent by FIIs, and the rest 9.9 per cent by non-institutional investors. 

The company has a market capitalisation of Rs 4186 crore and is currently trading at a PE multiple of 23x. The stock has a 52-week high and low of Rs 268.85 and Rs 155.65, respectively.