Kalyani Steels clinches new all-time high; what's keeping the bulls excited?

Kalyani Steels shares skyrocketed to a record high on Friday, rising for a second straight session. The stock of Kalyan Steels, part of the over $3.0 billion Kalyani Group, gained by as much as Rs 179.6, or 20 per cent, to Rs 1,077.7 apiece on BSE, crossing an existing peak of Rs 908 reached on Thursday.

At 2:40 pm, Kalyani Steels shares held on firmly to the green with a gain of 16 per cent at Rs 1,041.3 apiece on BSE.

Last week, the company inked a memorandum of understanding (MoU) with the Odisha government expressing its intent to set up:

a) a 0.7 MTPA Integrated Advanced Specialty Steel & Automotive Components Manufacturing

Complex with an estimated investment of Rs.6,626 crore, and

b) the first phase of an Integrated Titanium Metal / Alloy and Aerospace & Defense Components

Manufacturing Plant of 10,000 TPA capacity with an estimated investment of Rs 5,124 crore in Odisha

How Kalyani Steels shares have fared in the past?

The stock has delivered a return of 244 per cent in the past year, a period in which the headline Nifty50 index has gained 28 per cent.

Robust earnings

Since September 2022, the company has been consistently showcasing improvement on the operational front. For the quarter ended December 31, 2023, the company’s net profit grew 67 per cent to Rs 65.3 crore.

What does Kalyani Steels do?

The company is a leading manufacturer of forging and engineering quality carbon and alloy steels using the blast furnace route. Although the forging industry in the country is the primary market for the company’s products, manufacturers of various components for commercial vehicles, two-wheelers, diesel engines, bearings, tractors, turbines and rail also form a substantial part of the company’s clientele.