This Microcap stock deals in the business of manufacturing Sponge Iron, TMT bars, and M.S. Billets under the brand Vraj was up 8 percent in intraday trade after the company received consent from the Environment Conservation board to operate the plant.
Price Action
With a market capitalization of Rs.796.70 Crores, the shares of Vraj Iron and Steel Limited were up by 8 percent in the day’s trade touching a day’s high of Rs. 246.55 per share. The stock reiterated from the day’s high and was trading at Rs. 241.55 per share which is 5.92 percent higher than the previous closing price of Rs. 228.05 apiece.
What Happened
The stocks of Vraj Iron and Steel rose after the company received consent to operate for the expansion project of Sponge Iron and power plant from the Chhatisgarh Environment Conservation Board which is located in Dighora village, Tehsil-Takhatpur, Bilaspur district, Chhattisgarh.
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About the Company
Vraj Iron and Steel Limited was incorporated in 2004. It is one of the steel manufacturers in India that specializes in sponge iron, TMT bars, and MS billets under the Vraj brand. Operating two advanced manufacturing plants in Chhattisgarh, they focus on quality production and are expanding their capacity from 231,600 TPA to 500,100 TPA.
Vraj also aims to enhance energy efficiency through a captive power plant expansion. With a B2B sales model, it targets industrial clients and end-users, focusing on long-term customer relationships and operational excellence to meet rising steel demand in the market.
Financials & Ratios
Its Revenue from operations declined by 23.64 percent year on year from Rs. 116.22 Crore in Q2FY24 to Rs. 88.74 Crore in Q2FY25, accompanied by profits of Rs. 19.69 Crore to Rs. 10.29 Crore.
In terms of Return ratios, it has reported a return on equity (ROE) of 33.65 percent and a return on capital employed (ROCE) of 36.60 percent. It has a net profit margin of 13.67 percent as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 74.95 percent in Vraj Iron and Steel, Foreign Institutional Investors (FII) holding around 0.94 percent, Domestic Institutional Investors (DII) holding around 4.49 percent, and public holdings standing at 19.61 percent.
Written by Santhosh S
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