Tata Metaliks sizzles even as Sensex tumbles

Investors of Tata Metaliks are making hay even as Sensex is struggling to inch upwards closer to its all time high of 30000 levels. Tata Metaliks is trading up by almost 5 per cent on Monday at Rs. 365 per share on an intra-day basis even as Sensex is witnessing profit booking, now trading at 26348 level down by almost 287 points or 1.08 per cent at the time of filing this report. 

Tata Metaliks, engaged in manufacturing of pig iron, has surprised market participants by gaining approximately 200 per cent in almost 1 month's time. The stock has moved higher to its all time highs backed by an announcement by Tata Steel confirming reports of dropping its plans to merge Tata Metaliks and Tata Metaliks DI Pipes Ltd., with itself. The broader markets have remained flat during this one month period. During this period of 1 month or 20 odd trading sessions the stock was locked in upper circuit for almost 17 sessions with no sellers on the counter.

Tata Metaliks has posted record quarterly profits of Rs. 48.62 crore in the Q4 FY16 reflecting more than doubling of profits for the company over 1 year period. 

Tata Metaliks is in significant expansion mode and with stable commodity prices the stock may benefit and continue its out-performance. 

Over 1 year period the stock is up by almost 257 per cent and is trading at P/E multiple of 18.23