Foseco India Shares Surge Over 13%, Reach 52-Week High Today

Although struggling during the early trades of the session, Indian frontline indices managed to gain momentum, primarily driven by significant gains in sectors such as telecommunications, utilities, power and capital goods. Notably, all sectoral indices were exhibiting an upward trend at the time. 

The broader indices displayed notable outperformance compared to the main indices, with Dredging Corporation of India Ltd and Foseco India Ltd emerging as the top gainers within the BSE Smallcap index. 

On an intraday basis on Tuesday, shares of Foseco India Ltd climbed more than 13%, reaching a new 52-week high of Rs 3,855 per share on the BSE. Shares of the company have skyrocketed around 118% in the past year while providing stellar returns of more than 40% in just one month! 

The company’s impressive performance in the recent quarter could be one of the driving factors behind the increased buying interest from investors. Considering the company’s quarterly performance, it reported a healthy growth of 21.26% from Rs 99.75 crore registered in Q1FY23, recording total revenue of Rs 120.95 crore in Q1FY24. It has reported operating profit growth of over 50%.  

Compared to the same quarter last year, the net profit for the first quarter of FY24 grew 162.09%, from Rs 10.55 crore to Rs 27.66 crore. Presenting robust profitability, the company showcases a 20% return on equity and a 27% return on capital employed. Furthermore, the price-to-earnings (PE) ratio aligns with the industry’s average. 

Foseco India Limited specializes in producing additives and consumables for the metallurgical industry. These products are designed to enhance the physical characteristics and overall performance of castings. The comprehensive range of products includes insulating and exothermic feeding systems, direct pour technology, solidification simulation software, non-ferrous metal treatment and degassing systems, advanced coatings, environmentally friendly binders, and lining systems for ladles and furnaces. 

Keep a close eye on this scrip for the upcoming sessions!     

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.