Hold Mishra Dhatu Nigam, target price Rs 215: ICICI Securities

ICICI Securities has hold call on Mishra Dhatu Nigam with a target price of Rs 215. The current market price of Mishra Dhatu Nigam is Rs 202.85.

Mishra Dhatu Nigam, incorporated in the year 1973, is a Mid Cap company (having a market cap of Rs 3786.14 Crore) operating in Metals - Ferrous sector.

Mishra Dhatu Nigam key Products/Revenue Segments include Steel Alloys, Export Items, Other Operating Revenue and Sale of services for the year ending 31-Mar-2022.


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 31-12-2022, the company has a total of 19 Crore shares outstanding.

Investment Rationale
The brokerage believes current orderbook is likely to get executed by FY24E; however, in view of reduced budget for ISRO, ICICI Securities lowers its valuation multiple to 12x corresponding to the mean level over the past three years (earlier 1 deviation above mean at 14x).

Promoter/FII Holdings
Promoters held 74 per cent stake in the company as of 31-Dec-2022, while FIIs owned 0.52 per cent, DIIs 13.76 per cent.