Maha Seamless hits new high, up 5% as firm prepays loan to turn debt free

The company made voluntary prepayment of outstanding long term loan of Rs 234 crore on June 09, 2023. The stock has zoomed 53 per cent so far this year.

Maharashtra Seamless rallied 5 per cent to hit a fresh all-time high at Rs 495.65 on the BSE in Monday's intra-day trades on the BSE after the company informed BSE that it turned completely debt free on prepaying long-term loan worth Rs 234 crore.

At 11:20 AM, the stock had pared some gains but was still up 2.5 per cent at Rs 484. The counter had seen trades of around 35,000 shares as against the two-week average volume of around 43,000 shares on the BSE.

According to a release issued by the company to the BSE, Maharashtra Seamless we made voluntary prepayment of outstanding long-term loan of Rs 234 crore on June 09, 2023.

In view of its high order book and strong liquidity position, the company went ahead with this prepayment entirely from its internal accruals to become completely debt free. This is the second instance of voluntary prepayment of long term loan in the past 8 months, the release added.

The stock has been an outperformer so far in 2023, and soared as much as 53 per cent as against a mere 3 per cent rise on the benchmark index.

For the quarter ended March 2023, the company's consolidated net profit had dipped nearly 6 per cent to Rs 372.69 crore when compared with the profit in the year ago period. Total income, however, rose 14.3 per cent year-on-year (YoY) to Rs 1,632.86 crore.

For the fiscal year 2022-23, the company's consolidated net was up 11 per cent at Rs 767.62 crore as against Rs 691.64 in FY22. Total income increased by 35.8 per cent YoY to Rs 5,716.37 crore.

In November 2022, the company had issued bonus shares in the 1:1 ratio; i.e. one free share for every shareholding holding a share as per the then record date.