This aerospace and defence company's share rallied over 350 per cent from its final IPO issue price, do you own it?

The shares of this defence company have generated an impressive return of around 120 per cent in the past one year.

Mishra Dhatu Nigam, which manufactures superalloys, titanium, special-purpose steel, and other special metals, celebrated the sixth anniversary of its IPO journey today, the same day it debuted in the Indian market back in 2018.

The IPO opened on March 21, 2018, and closed on March 23, 2018. The IPO subscription was not that impressive and had subscribed around 1.21 times on the final day of the IPO window. The IPO price range was set between Rs 87 and Rs 89, with a face value of Rs 10 per share and a lot size of 150 shares. The total size of the company's IPO was Rs 438.38 crore. The stock debuted on April 4, 2018, with a premium in the market at a discount at Rs 87 per share on the Indian market. Despite this subdued listing, it made significant wealth for the investors who showcased their faith in the company and held shares since the IPO.

Today, it completed its sixth-year listing journey and concluded the trading session at Rs 413.35 per share, representing a multibagger return of around 364 per cent compared to its final IPO issue price of Rs 89 per share. 

Financial Performance 

According to the recent quarterly result, the company experienced an increase in its revenue from operations, rising from Rs 231 crore to Rs 252 crore, marking an 8.85 per cent increase. The company reported an operating profit of Rs 36 crore, compared to Rs 66 crore in the corresponding quarter of the previous year. The operating profit margin stood at 14 per cent during the quarter. Meanwhile, the company's net profit for the quarter amounted to Rs 12 crore, showing a significant decline compared to the profit of Rs 38 crore in the corresponding quarter of the previous year.   

The company's ROCE and ROE are 14.6 per cent and 12.6 per cent, respectively. The company's shares are currently trading at a P/E ratio of 69.7 times in the market.   

Business Overview  

Mishra Dhatu Nigam 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 stake in the company after its IPO in 2018.

Investors must keep this Small-Cap multibagger stock on their radar.

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