Penny stock under Rs 40: Q1FY26 revenue up 17.9 per cent, solar plant commissioned, defense sector entry planned by April 2026

On Tuesday, shares of Tirupati Forge Ltd plunged 3.24 per cent to Rs 37.36 per share from its previous closing of Rs 38.61 per share. The stock’s 52-week high is 72.88 per share and its 52-week low is Rs 25.14 per share.

Tirupati Forge Ltd., established in 2012, is a prominent manufacturer of carbon steel forged flanges, forged components and automotive parts. Operating under the brand Tirupati, the company excels in closed-die forged products for diverse sectors including automotive, aerospace, construction and marine. Its extensive product portfolio features flanges, specialized components, earth-moving parts, gears, shafts, rings, tool discs and machine tools, catering to a global client base with 55 per cent of its revenue derived from overseas markets like the USA, Canada, Malaysia, Europe and African countries. The company boasts a manufacturing unit spread across 5 acres with in-house testing and R&D labs and an installed capacity of 15,000 TPA, adhering to high-quality standards with certifications like IATF 16949:2016 and ISO 9001:2015.

The company showcased strong financial performance in Q1FY26, with Total Income increasing by 17.9 per cent to Rs 329 million and EBITDA growing by 21.9 per cent to Rs 43.03 million quarter-on-quarter. Despite a Rs 2.84 million increase in depreciation from recent capital investments and escalating geopolitical tensions, PAT rose by 8.5 per cent to Rs 14.10 million, driven by increased demand from overseas markets. Tirupati Forge is also strategically expanding into the defence sector, with civil works for a new manufacturing facility targeted for completion by March 2026 and plans to apply for a defence manufacturing license by April 2026.

Tirupati Forge's manufacturing capabilities are robust, featuring a 15,000 TPA forging capacity with MPM Hammers (2.5 ton and 4 ton) handling job weights from 0.5 Kg to 125 Kg and a press line for forging up to 2kg. It also has a 15,000 TPA ring rolling capacity, heat treatment capacity of 1000 kg/hr for various processes and a fully automatic paint shop with 60 TPD capacity. The company's machining facility is equipped with CNC machines ranging from 15mm to 800mm OD and fully automatic VMC machines for 1000mm OD. Notably, Tirupati Forge is among only three firms in India to have installed a 630-ton Lasco Press Line, cementing its position as a leading forging and machining line provider in the country.

The company has a market cap of over Rs 400 crore. From Rs 25.14 (52-week low) to Rs 37.36 per share, the stock is up by 48.6 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.