This quality defence stock hit a 52-week high on September 16

Its customised superalloys are used in defence, space, and atomic energy sectors.

On September 16, shares of Mishra Dhatu Nigam closed at Rs 215.35, up 5.32 per cent on the day. The stock opened at Rs 201.1 and has since reached an intraday high and low of Rs 233 and Rs 201.1, respectively. 

Mishra Dhatu Nigam produces superalloys, titanium, special purpose steel, and other speciality metals for use in defence and aerospace applications. It is a PSU in which the central government owns a 74 per cent stake. 

Mishra Dhatu Nigam Ltd was established by the government in 1974 to achieve self-sufficiency in the production of special metals and super alloys important for the improvement of the defence, space, and atomic energy sectors. 

The company reported a revenue of Rs 859 crore and a net profit of Rs 176 crore in FY22, with a healthy net profit margin of 20 per cent. Because of its highly customised value-added offerings, the company can achieve high profitability. 

According to FY22, the company's ROE and ROCE are 15.6 per cent and 19.4 per cent, respectively. Additionally, it has a strong dividend yield of 1.38 per cent. 

The company has a market capitalisation of Rs 4034 crore and is trading at a 21.76x PE. The stock's 52-week high and low are at Rs 233 and Rs 155.65, respectively. 

The company's prospects look promising in light of the Atmanirbhar Bharat initiative and the government's emphasis on the defence sector.