Penny stock below Rs 15: Small-cap company receives order worth Rs 210 crore from Rashtriya Ispat Nigam Ltd (RINL)
DSIJ Intelligence-1Categories: Penny Stocks, Trending
The stock is up by 55 per cent from its 52-week low of Rs 7.16 per share.
Steel Exchange India Ltd (SEIL) has been awarded a significant conversion contract by Rashtriya Ispat Nigam Limited (RINL), a public sector undertaking. This contract involves the conversion of 1.20 lakh tons of billets per annum into various sizes of Vizag Steel TMT rebars. The work will be performed at SEIL's existing new rolling mill, which is expected to enhance capacity utilisation and boost revenues. The initial term of the contract is two years, with an option for an extension of an additional year upon mutual consent.
The contract is a domestic award from RINL, specifically for the conversion of billets into Vizag Steel TMT rebars. The value of this order is considerable, estimated to be up to Rs 210 crore, which translates to approximately Rs 70 crore per annum for three years if the extension is exercised. This strategic partnership highlights SEIL's capability in steel processing and is anticipated to contribute positively to the company's financial performance.
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About the Company
Incorporated in 1999, Steel Exchange India Ltd (SEIL) operates as the flagship company of the Vizag Profiles group, focusing on the manufacturing of steel products, trading of related items and generation and sale of power. SEIL is an integrated steel maker, producing Thermo Mechanically Treated (TMT) Bars under its prominent brand SIMHADRI TMT, which includes variants like Fe500D, Fe550D and Fe500D CRS, available in sizes from 8mm to 32mm. Their integrated steel plant also manufactures Billets and Sponge Iron, reinforcing their position as a key player in the steel industry.
The company has a market cap of over Rs 1,200 crore and currently, this Small-Cap stock is trading below Rs 15 per share. In Q4FY25 results, the company reported net sales of Rs 291.42 crore and net profit of Rs 4.76 crore while in its FY25 results, the company reported net sales of Rs 1,144 crore and net profit of Rs 26 crore. The stock is up by 55 per cent from its 52-week low of Rs 7.16 per share.
Disclaimer: The article is for informational purposes only and not investment advice.