Multibagger Casting & Forging Company Launches Wagon Axle for Railway Wagons

The stock’s 52-week high is Rs 173.85 while its 52-week low of Rs 98.10 per share.

Hilton Metal Forging Ltd, a manufacturer of forged products for various industries, has launched a new product line: wagon axles for railway wagons. This comes at a time when India relies on imports to meet its wagon axle needs. Hilton Metal's entry into this market aligns with the government's "Make in India" and "Atmanirbhar Bharat" initiatives, aiming to reduce reliance on imports and boost domestic manufacturing.

The company is looking to capitalize on this new opportunity. They have an installed capacity to manufacture 48,000 wheels annually and are eyeing further expansion into wagon wheelset production once they receive approval from RITES. Additionally, the board of directors recently approved a proposal to raise funds of up to Rs 100 crore through a fresh issuance of equity. This capital increase, subject to regulatory and shareholder approvals, would raise the company's paid-up capital from Rs 25 crore to Rs 35 crore.

Strong Financial Performance for Hilton Metal

Hilton Metal Forging Ltd has shown consistent financial growth. For the financial year 2023-24 (FY24), the company reported a total income of Rs 139.9 crore, reflecting a 32.7 per cent increase compared to the previous year. Net profit also witnessed a rise of 14.1 per cent, reaching Rs 6.68 crore in FY24. This positive trend continued in Q4FY24, with net profit and total income growing by 120 per cent and 11.7 per cent year-over-year, reaching Rs 54.9 lakh and Rs 34.53 crore respectively.

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The company has demonstrated its commitment to the railway sector. Since initiating the development of railway-forged wagon wheels in 2022, Hilton Metal has supplied over 2,500 units and rail gear blanks within 18 months. They currently cater to the replacement market across various Indian Railway Workshops.

Overall, Hilton Metal Forging Ltd is a growing company with a strong track record of financial performance. The launch of wagon axles and potential fundraising position them for further expansion in the railway sector, while their existing product portfolio caters to diverse industries.

Stock Action: Today, shares of Hilton Metal Forging Ltd plunged 4.27 per cent to Rs 101.95 per share from its previous closing of Rs 106.50. The stock’s 52-week high is Rs 173.85 while its 52-week low of Rs 98.10 per share.

Hilton Metal Forging Ltd is primarily engaged in manufacturing steel forgings; and also caters to the needs of the oil and gas, refineries and pharmaceutical industries. Hilton Metal Forging Limited is the first MSME company to develop indigenous solid forged railway wheels. The company has a market cap of Rs 214 crore and investors should keep an eye on this micro-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.