One of the micro-cap steel stocks engaged in manufacturing galvanised pipes, tubes, and sheets. The stock has jumped 3.65 percent after receiving a supply order for 1500 MT of Demac GP Pipes and Tubes.
Stock Price Movement
In Tuesday’s trading session, Newmalayalam Steel Limited’s share jumped to an intraday high of 3.65 percent from the previous close of Rs. 68.45. The stock opened at Rs. 66.25 and is currently trading at Rs. 70.80, with a high of Rs. 70.95 and a low of Rs. 65.05. The market capitalization now stands at approximately Rs. 122.40 crore.
What Happened
Newmalayalam Steel Limited has received an order on 7th January 2025 to supply 1500 metric tons of Demac GP Pipes and Tubes, worth Rs. 10.59 crore, inclusive of GST. The delivery is expected within 90 working days. This is a domestic sale contract.
Products and Services Offering
Newmalayalam Steel is a prominent manufacturer of galvanized pipes, tubes, and sheets, widely used in Kerala households for roofing solutions that reduce heat and prevent leakage. The company also caters to various industries, including construction, automobiles, solar panels, and furniture.
The company product range includes GP pipes, GI pipes, coils, sheets, slits, and additional items like scrap and rejected pipes, showcasing their versatility and broad market presence.
Business Expansion
Newmalayalam Steel plans to expand by upgrading manufacturing technology, enhancing solar power generation for sustainability, and building new production and storage facilities. The company also aims to boost marketing efforts for better brand visibility and secure working capital to support continued growth.
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Recent quarter results and ratios
Newmalayalam Steel Limited’s revenue has decreased from Rs. 354 crore in FY23 to Rs. 300 crore in FY24, which has down by 15.25 percent. The net profit of Newmalayalam Steel Limited has also grown by 33.33 percent, from Rs. 6 crore in FY23 to Rs. 4 crore in FY24.
In terms of return ratios, the company’s ROCE and ROE should be 10.7 percent and 11.1 percent, respectively. The debt-to-equity ratio of the company is to be 0.83x. Newmalayalam Steel Limited’s EPS is to be Rs. 3.83.
Shareholding pattern
In September 2024, Newmalayalam Steel Limited had a majority stake held by the promoters at 73.02 percent, foreign institutional investors at 2.55 percent, and the public at 24.43 percent.
Company Overview
Newmalayalam Steel Limited was established in 2017 and specializes in manufacturing galvanized pipes, tubes, and sheets under the “Demac Steel” brand. The company began production in 2018 and has become a key player in Kerala’s construction sector, offering durable, rust-resistant products to meet industry needs.
Written By – Nikhil Naik
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