Buy Mishra Dhatu Nigam, target price Rs 281: HDFC Securities
Time period given by analyst is 2 quarters when Mishra Dhatu Nigam price can reach defined target.
By ETMarkets.com | Updated:
Agencies
HDFC Securities has buy call on Mishra Dhatu Nigam with a target price of Rs 281. The current market price of Mishra Dhatu Nigam is Rs 246.75. Time period given by analyst is 2 quarters when Mishra Dhatu Nigam price can reach defined target.
Mishra Dhatu Nigam, incorporated in the year 1973, is a Mid Cap company (having a market cap of Rs 4624.66 Crore) operating in Metals - Ferrous sector.
Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 190.36 Crore, up 55.63 % from last quarter Total Income of Rs 122.32 Crore and up .18 % from last year same quarter Total Income of Rs 190.02 Crore. Company has reported net profit after tax of Rs 33.56 Crore in latest quarter.
The company’s top management includes Dr.Sanjay Kumar Jha, Mr.Gowri Sankara Rao Naramsetti, Mr.Anurag Bajpai, Mr.T Muthukumar, Mr.V Chakrapani, Mrs.V T Rema. Company has Sarath & Associates as its auditors. As on 30-06-2022, the company has a total of 19 Crore shares outstanding.
Investment Rationale
MIDHANI has established market position in manufacturing of super alloys with operating efficiency. Also, the company has strong track record in signing and executing deals. The brokerage noted that sizeable revenue growth and steady operating margin of 28-30%, ensures healthy cash accrual and liquidity.
Furthermore, the company's strong financial profile with healthy liquidity, negligible debt and attractive return ratio, on the back of good revenue visibility makes the stock attractive. Investors could buy in the Rs 235- 239 band and add more on dips to Rs. 211- 215 band(17x FY24E EPS).
Promoters held 74.0 per cent stake in the company as of 30-Jun-2022, while FIIs owned 0.51 per cent, DIIs 14.59 per cent.
Mishra Dhatu Nigam, incorporated in the year 1973, is a Mid Cap company (having a market cap of Rs 4624.66 Crore) operating in Metals - Ferrous sector.
Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 190.36 Crore, up 55.63 % from last quarter Total Income of Rs 122.32 Crore and up .18 % from last year same quarter Total Income of Rs 190.02 Crore. Company has reported net profit after tax of Rs 33.56 Crore in latest quarter.
The company’s top management includes Dr.Sanjay Kumar Jha, Mr.Gowri Sankara Rao Naramsetti, Mr.Anurag Bajpai, Mr.T Muthukumar, Mr.V Chakrapani, Mrs.V T Rema. Company has Sarath & Associates as its auditors. As on 30-06-2022, the company has a total of 19 Crore shares outstanding.
Investment Rationale
MIDHANI has established market position in manufacturing of super alloys with operating efficiency. Also, the company has strong track record in signing and executing deals. The brokerage noted that sizeable revenue growth and steady operating margin of 28-30%, ensures healthy cash accrual and liquidity.
Furthermore, the company's strong financial profile with healthy liquidity, negligible debt and attractive return ratio, on the back of good revenue visibility makes the stock attractive. Investors could buy in the Rs 235- 239 band and add more on dips to Rs. 211- 215 band(17x FY24E EPS).
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Promoter/FII Holdings Promoters held 74.0 per cent stake in the company as of 30-Jun-2022, while FIIs owned 0.51 per cent, DIIs 14.59 per cent.
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