Home / Markets / Stock Markets /  Metal stock trades ex-bonus issue. Brokerage has 'Buy' tag

Shares of Maharashtra Seamless started trading ex-bonus on Friday, November 25, 2022. The company last month announced the issue of bonus equity shares of the company in the ratio of 1:1 and fixed record date as Monday, November 28, 2022.

The company announced 1 bonus share for every share held in its Q2 FY23 result board meeting. The said adjustment came into effect from Friday and therefore the number for shares have been revised upward to 134 million share from 67 million share previously. Bonus shares are fully paid additional shares issued by a company to its existing shareholders.

“We have not changed our estimates and only given effect to increase in the no of shares. Consequently, we have revised our target prices from 930 to 465. Maintain buy," said brokerage PhillipCapital in a note on Friday.

For the second quarter ending September 2022 of the current fiscal (Q2FY23), the company's net profit rose 94% to 176.5 crore as against 91 crore during the previous quarter ended September 2021. Meanwhile, its revenue during Q2 FY23 rose 48% to 1,414 crore from 951 crore in the year ago quarter.

“Maharashtra Seamless (MHS) derives majority of its profits from its seamless division, whose outlook remains strong, considering current energy prices and high rig counts across the globe, we believe volumes to remain elevated for MHS, driving higher profitability aided by USTPL ramp up and new valued added products inclusions. Despite capex plans, we continue to expect MHS to maintain net cash status," the brokerage had said in a note in October on company's Q2 results.

Maharashtra Seamless Ltd (MSL) is engaged in manufacturing of Seamless and ERW steel pipes & tubes, incorporated during year 1988. MSL is a flagship company of D P Jindal Group and is led by Executive Chairman D.P Jindal & Managing Director Saket Jindal. Maharashtra Seamless has diversified its business portfolio in Renewable Power generation and acquisition of a stake in an iron ore mine in Amapa, Brazil.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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