Small-cap stock Maithan Alloys skyrocketed to fresh high as it has acquired a number of PSU stocks

The bulls are running wild on Dalal Street, and the NSE benchmark Nifty 50 is on the cusp of creating history, aiming to shatter its previous all-time high set on December 20 at a tantalizing 21,593. As the market buzzes with excitement, one company is not just riding the wave but making some intriguing moves that have caught the attention of investors. Enter Maithan Alloys Ltd (MAL), a name not just familiar to the world of ferroalloys but now making waves in the stock market.

A Stock Soaring High:

On Wednesday, amidst the market fervor, MAL saw its stock price shoot up by a whopping 15%, leaving traders in awe. The NSE witnessed a trading volume six times higher than the 30-day average, crossing the 6 lakh mark. A fresh 52-week high signaled that MAL wasn’t just riding the rally; it was leading the pack.

What Sets Maithan Alloys Apart:

Maithan Alloys stands tall as one of the largest domestic producers of manganese-based ferroalloys, boasting an installed capacity of 2,35,600 tonnes per annum. The recent acquisition of IMFAL, with a capacity of 49,500 MTPA in fiscal 2022, has elevated MAL to the position of the largest manganese alloy manufacturer in India. Notable customers include giants like Steel Authority of India Ltd (SAIL) and Tata Steel Ltd in the domestic market.

Venturing beyond borders, MAL has expanded its presence overseas. The company’s success is anchored in the expertise of its promoters, who bring over two decades of experience, a deep understanding of market dynamics, and robust relationships with customers and suppliers.

A Bullish Buying Spree:

What’s turning heads is not just MAL’s stock surge but its recent buying spree. The company has been flexing its financial muscles by investing in a diverse set of stocks, and here’s the list:

1. NATCO Pharma Ltd
2. RITES Ltd
3. Canara Bank
4. Bank of Baroda
5. Bank of Maharashtra
6. Union Bank of India
7. Jio Financial Services Limited (JIO)
8. State Bank of India
9. GAIL India
10. Housing and Urban Development Corporation Ltd. (HUDCO)
11. Canara Bank

In a surprising move, MAL has even entered into an agreement to purchase 10 lakh equity shares of the National Stock Exchange of India Limited (NSE), signaling a whopping Rs 324 crore commitment.

Financial Fortitude:

With a market cap of Rs 3,755 crore and a book value of Rs 999, MAL stands as a formidable player in the market. Boasting a PE ratio of 12.9x and an ROE of 20%, the company is nearly debt-free, and its working capital requirements have witnessed a reduction. The stock has rewarded investors with an impressive 18.28% return in the last year.

The Million-Rupee Question:

As Maithan Alloys diversifies its portfolio with strategic investments in various sectors, the question arises – has the company taken the right steps to capitalize on the current market momentum? Share your thoughts in the comment section below, and let’s continue to watch this intriguing saga unfold on the dynamic canvas of the Indian stock market. The bulls are running, and Maithan Alloys is not just running with them; it’s setting its own trail ablaze!

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.