Shares of Mishra Dhatu Nigam (Midhani) rallied over 7% to hit an all-time high of ₹259.25 in intraday trade on Wednesday amid a report that the government-owned aerospace and defence company is likely to collaborate with Boeing India to develop raw materials for aerospace parts. Cheering the news, the stock witnessed strong volume trade, which helped the share price to breach its previous record high of ₹251.50 touched on October 10, 2022. In the last four months, the smallcap stock has surged 40%, from its 52-week low of ₹155.65 on May 20, as compared to 9% growth in the BSE benchmark Sensex during the same period.
On Wednesday, Midhani shares opened higher for the second straight session at ₹244, against the previous closing price of ₹242.25 on the BSE. Extending opening gains, the stock climbed 7.1% to hit a record high of ₹259.25 on the back of strong volume trade. The counter witnessed a surge in buying activities as 3.27 lakh shares changed hands over the counter as compared to the two-week average volume of 1.64 lakh stocks. The company's market capitalisation increased to ₹4,666.64 crore. Finally, the stock settled day’s trade at ₹249.10, up 2.83%.
The PSU stock has delivered nearly 25% returns to its shareholders in the past one year, while it rose 36.5% in the calendar year 2022. In the past six months, the stock has risen 21%, while it added 12.7% and 6% in a month and a week, respectively.
Mishra Dhatu Nigam shares got a boost after Boeing India on Tuesday announced it would assess and collaborate with Midhani to develop raw materials for standard aerospace parts and components in India. The company, which is under the administrative control of the Ministry of Defence's Department of Defence Production, manufactures special metals and super alloys critical to growth of the defence, space and atomic energy segments.
“Public sector units are an important part of Boeing’s supply chain footprint in India. The potential collaboration with MIDHANI will strengthen Boeing’s supply base and increase material sourcing options from India,” Salil Gupte, president, Boeing India, said.
Speaking on the same, Sanjay Kumar Jha, chairman and managing director, Midhani, said, “We are excited about the prospect of partnering with Boeing on raw materials for the aerospace industry. This sits well with our plans to collaborate with multinational institutions and companies to strengthen our capabilities for producing critically advanced technology products here in India.”
For April-June quarter of the current fiscal (Q1 FY23), the Mini-Ratna defence company reported a profit after tax (PAT) of ₹17.70 crore as against ₹18.81 crore in the corresponding period last year. It posted a turnover of ₹114.93 crore during the quarter under the review, a growth of 0.77% against ₹114.05 crore in the same period of the previous year. Value of Production (VoP) during the quarter stood at ₹233.67 crore, up 91.46% against ₹122.05 crore recorded in Q1 FY22. The board of directors also approved an interim dividend of ₹1.56 per equity share on March 14, 2022. Further, the board also recommended a final dividend of ₹1.54 apiece for the year ended March 31, 2022.
