Smallcap Defence Company Bags Order Worth Rs 285 Crore: FIIs Increased Stake in Q1 FY25!

The company’s shares have delivered an impressive return of around 120 per cent to its shareholders.

Mishra Dhatu Nigam Ltd (MIDHANI) manufactures superalloys, titanium, special-purpose steel, and other special metals. It was incorporated in 1973 in Hyderabad as a Government of India enterprise under the Ministry of Defence. The Government of India still owns approximately 74 per cent of the company after its IPO in 2018.

Today, the company announced that it has secured a work order worth Rs 285 crore. With this, the open order position of MIDHANI as of today stands at approximately Rs 2,098 crore. They have not released any other relevant information like the client’s name, order details, and so on.

Today, the shares of Mishra Dhatu Nigam Ltd closed at around Rs 434.50 per share on the BSE. The company’s current market capitalization stands at Rs 8,140 crore. Additionally, the shares have delivered a return of over 120 per cent in the past 2 years.

As per the Quarterly Results, in the Q1 FY25, Mishra Dhatu Nigam Ltd recorded a revenue of Rs 163.45 crore compared to Rs 187.72 crore. The operating profit stood at Rs 23.30 crore. The net profit stood at Rs 5.11 crore compared to a profit of Rs 18.54 crore. Looking at the annual performance, the company generated a revenue of Rs 1073 crore in FY24. The operating profit for FY24 was Rs 194 crore with a net profit of Rs 91 crore compared to a net profit of Rs 156 crore in FY23.

According to the shareholding pattern of the company, the promoters hold a significant 55.50 per cent stake. Public investors own 74 per cent of the shares, while Foreign Institutional Investors (FIIs) hold 1.27 per cent which was earlier 1.07 per cent and Domestic Institutional Investors (DIIs) own 9.33 per cent.

Check out my recent article here.

Investors must keep this stock on their radar.

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