Steelcast jumps 7.7% in 2 days on capex plans

Steelcast surged 6.17% to Rs 29.25 at 13:05 IST on BSE, with the stock extending Wednesday's 1.47% gains triggered by the company's capital expenditure plans.

Meanwhile, the S&P BSE Sensex was up 27.54 points or 0.14% at 19,883.78.

On BSE, 4,780 shares were traded in the counter as against average daily volume of 3,988 shares in the past one quarter.

The stock rose as much as 11.25% at the day's high of Rs 30.65 so far during the day. The stock rose 3.26% at the day's low of Rs 28.45 so far during the day. The stock had hit a 52-week low of Rs 24 on 24 September 2013. The stock had hit a 52-week high of Rs 61 on 15 October 2012.

The stock had underperformed the market over the past one month till 25 September 2013, sliding 1.96% compared with the Sensex's 7.22% rise. The scrip had also underperformed the market in past one quarter, declining 22.18% as against Sensex's 6.59% rise.

The small-cap company has equity capital of Rs 9.11 crore. Face value per share is Rs 5.

Shares of Steelcast have surged 7.73% in two trading sessions from a recent low of Rs 27.15 on 24 September 2013, after the company during trading hours on Wednesday, 25 September 2013, announced raising its plant capacity by 8,000 tons by October 2013 to take total capacity to 30,000 tons at its current location in Bhavnagar. The stock had risen 1.47% to settle at Rs 27.55 on Wednesday, 25 September 2013.

Steelcast said that the company has invested more than Rs 100 crore so far in raising its capacity from 10,000 tons to 30,000 tons in last three years. Last year, the company had invested around Rs 45 crore while this fiscal it will be investing another Rs 23 crore, Steelcast said.

As on 31 March 2013, exports constituted 53% of Steelcast's total sales. The company aims to take this up to 65% of total sales by 31 March 2015.

Steelcast's net profit surged 35.6% to Rs 4 crore on 10.3% decline in net sales to Rs 54.51 crore in Q1 June 2013 over Q1 June 2012.

Steelcast is India's leading steel castings manufacturing company in the earthmoving equipment sector. The company is engaged in the production of sand castings and shell castings through product mix of carbon steel, low alloy steel and high alloy steel. It has formed JV with a US company to tap the huge potential for castings in the US, especially the US Railways for freight transport.

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