Mishra Dhatu Nigam
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Mishra Dhatu Nigam (MIDHANI) is positioned for stable revenue growth, supported by a robust order book of INR 2,290 crores and increasing demand in the defense and aerospace sectors. Management's focus on vertical integration and operational efficiency, particularly through the establishment of a 'metal bank' and a significant INR 1,000 crore capex program, aims to mitigate supply chain risks and modernize infrastructure. These initiatives are expected to enhance margins, which are projected to improve despite challenges related to raw material imports and fixed-price contracts. Vista's financial outlook reflects this positive trajectory, with revenue growth anticipated to align with historical performance and margins expected to expand. The favorable macro environment, characterized by strong manufacturing activity and government support for indigenous development, further bolsters MIDHANI's growth prospects. Over the next 12-24 months, key opportunities include capitalizing on NADCAP-driven export opportunities and niche aerospace-grade products, while watchpoints include potential volatility in raw material costs and the execution of modernization plans. Overall, MIDHANI's strategic initiatives and favorable industry dynamics support Vista's positive investment outlook
Why We Like This Stock
- Strong order book of INR 2,290 crores indicates robust demand in defense and aerospace sectors
- Strategic initiatives like the 'metal bank' and significant capex program are set to enhance operational efficiency and margins
- Favorable macro conditions and government support for indigenous development provide a conducive environment for growth
Things To Watch Out For
- Challenges related to raw material imports and fixed-price contracts may impact profitability
- Execution risks associated with the modernization of aging infrastructure could affect operational performance
- Potential volatility in raw material costs may pose risks to margin expansion
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,073 | 1,074 | 1,209 | 1,417 | 1,791 |
| Profit Before Tax (Cr.) | 131 | 156 | 184 | 243 | 306 |
| PBT Margin | 12.2% | 14.5% | 1521.9% | 17.2% | 17.1% |
| Net Profit (Cr.) | 96 | 117 | 135 | 178 | 224 |
| Earnings Per Share | 5.1 | 6.3 | 7.2 | 9.5 | 11.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▲ Buy | 480 | 04-Jun-2026 |
| Moneycontrol | ▲ Overweight | nan | 04-Jun-2026 |
Company Overview
Show Company Profile
Mishra Dhatu Nigam Limited manufactures and sells super alloys, titanium, special purpose steel, and other special metals in India and internationally. The company provides special steels, including martensitic, special, austenitic, and precipitation hardening steels for use in aerospace, power generation, nuclear, defence, cryogenic, and other general engineering industries. It also offers nickel, cobalt, and iron-based superalloys; titanium and titanium alloys, soft magnetic, controlled expansion alloys; investment castings products; bars, bright bars, and wires/fine wires; and hot and cold rolled sheets, and strips, as well as open die forging products. In addition, the company offers welding consumables, fasteners, biomedical implants, and armour products. Mishra Dhatu Nigam Limited was incorporated in 1973 and is based in Hyderabad, India.