Stock of this iron & steel company has zoomed over 90% in 10 days

Shares of Gallantt Ispat hit a record high and were locked at the 10 per cent upper circuit for the second straight day on strong business outlook.

Shares of Gallantt Ispat were locked at the 10 upper circuit for the second straight day, at Rs 185.59, also its record high on the BSE on Wednesday at 11:01 AM owing to on strong business outlook.

A combined 1.4 million equity shares had changed hands on the NSE and BSE. There were pending buy orders for around 400,000 shares on the exchanges, data shows.

In the last 10 trading days, the stock price of the iron & steel company has zoomed 93 per cent from a level of Rs 96.80 on December 12. In the past two months, it has more-than-doubled or up 120 per cent.

The price/volume movement in securities of the company is purely market driven and may be a combination of various factors including market conditions. The management of the company is in no way connected with the movement in the price/volume of the shares, Gallant Ispat had said on December 14 in reply to a clarification on significant increase in volume of security.

Gallantt Ispat is engaged in the business of manufacture of Iron and Steel and power generation. The company's management said it expected EBITDA (earnings before interest, taxes, depreciation, and amortization) margin expansion of 400 basis points from 9 per cent in FY23 to 13 per cent in FY26. EBITDA is expected to grow at a three year CAGR of 20 per cent. Revenue CAGR of 6 per cent is expected over the next three years with revenue of around Rs 5,000 crore in FY26 (E).

For the first half of FY24 (H1FY24), Gallantt Ispat had reported 49 per cent year-on-year (YoY) growth in profit after tax at Rs 77.97 crore. EBITDA grew 2.8 per cent YoY at Rs 160.42 crore and revenue was up 1.6 per cent YoY at Rs 1,989 crore. The company said cost rationalization drives bottom line performance.

Meanwhile, the company proposes to install an additional furnace of 30 ton per heat capacity. This furnace is expected to improve production capability by 15 per cent. The installation of this furnace will cost around Rs 25 crore and it is expected to be operational in the beginning of calendar 2024.

The company has also completed the purchase of two railway rakes with an investment of Rs 55 crore. One railway rake has been received and the other one is expected by January 2024.