NSE SME stock jumps 8% despite fall in Nifty 50, Sensex for seventh straight session

Stock market today: Shares of Aditya Ultra Steel Limited, a stock listed on NSE SME, rallied 8 per cent in intra-day trade on Monday, November 18, defying a weak global market mood. The stock rally can be attributed to the company’s financial performance for the half year ended September 2024.

For the first six months of the financial year 2024-25 (H1FY25), Aditya Ultra Steel Limited said it continued its trajectory of robust growth, reporting significant improvement across key financial metrics. The company released its financial performance update last week.

In a press release, dated November 16, the company said its H1FY25 revenue stood at ₹312.39 crore, EBITDA at ₹10.50 crore and net profit at ₹5.20 crore. “Company is set to embark on a major expansion initiative aimed at increasing production capacity, improving operational efficiency, and advancing sustainable practices,” it said in a press release.

SME IPO Details

Aditya Ultra Steel launched its SME issue in September 2024 to raise ₹45.88 crore for funding its expansion plans, including meeting working capital requirements and general corporate purposes. The company was listed on the NSE SME on September 16. The IPO was priced in the range of ₹59 to ₹62 per share, with the stock listing at a nearly 13 per cent premium at ₹69.60 apiece.

The stock hit its highest level of ₹72 on the listing day itself but plunged to its all-time low of ₹50 on November 13, 2024. Currently, the stock is trading below its IPO price and listing price.

On Monday, the stock was trading nearly 8 per cent higher at ₹54 around 11.10 am.

Expansion Plans

As part of its expansion strategy, the company is setting up a solar power plant with a capacity of 5,000 KWP at Jasdan, Rajkot, aimed at significantly meeting the company’s energy needs while enhancing sustainability and reducing exposure to electricity price fluctuations. It is investing ₹15.35 crore for the project.

Sunny Sunil Singhi, Managing Director, Aditya Ultra Steel Ltd, said, “At Aditya Ultra Steel, we believe that innovation, quality, and sustainability are the pillars of our growth. This expansion represents a critical step in our journey towards becoming a global leader in the steel industry. By investing in cutting-edge technologies and prioritizing sustainability, we aim to provide our customers with superior products while making a positive impact on the environment. We are excited about the opportunities this growth will create for our employees, stakeholders, and the communities we serve.”

Aditya Ultra Steel manufactures rolled steel products i.e. TMT bars under the brand name ‘Kamdhenu’. The company's manufacturing facility is located in Wankaner, Gujarat and has a production capacity of 1,08,000 MT for TMT bars.

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