This small-cap steel stock hit a fresh 52-week high despite a weak market

Today is the ex-dividend date for the interim dividend of Rs 3.

On January 27, the market is trading in the red. At 11:11, the S&P BSE Sensex is trading at 59,492.11, down 1.18%, while NIFTY50 is trading at 17,688.60, down 1.14%. Regarding sectoral performance, Healthcare and FMCG are outperformers, while Power and Oil & Gas are among the top losers. Talking about stock-specific action, Surya Roshni Ltd is among the top gainers in BSE group ‘A’. Today is the last day for the investors to buy the stock to be eligible for getting an interim dividend of Rs 3 from the company.

The shares of Surya Roshni Ltd are trading at Rs 632, up by 3.5% from its previous close of Rs 611.1. The stock opened at Rs 611.9 and made an intraday high and low of Rs 633.05 and Rs 609.3, respectively. The company has a market capitalisation of Rs 3420 crore and belongs to BSE small cap index.

 Surya Roshni Ltd operates into two business segments- Steel Pipe and Strips Segment and Lighting and Consumer Durables Segment. About 80% of the revenue comes from Steel Pipe and Strips Segment, while the rest 20% is from the other segment. It is India's top exporter of ERW (Electrical Resistance Welding) pipes, the top manufacturer of GI (Galvanised Iron) pipes, and 2nd largest player in the domestic lighting industry.

In FY22, the company delivered excellent results. For FY22, the company’s revenue increased by 39%, while its net profit jumped by 29.5%, reported at Rs 204.92 crore.

For the latest September quarter, the company reported total revenue of Rs 1984 crore with 2% YoY growth. For the same quarter, the net profit increased significantly by 55% YoY from Rs 44 crore in Q2 FY22 to Rs 68 crore.

About the shareholding pattern, 62.96% is owned by the promoters, 1.18% by FIIs, 0.04% by DIIs, 1.89% by Surya Roshni Employees Welfare Trust, and the rest 33.93% by non-institutional investors.

The stock is trading at a TTM PE of 12.68x and has a 52-week high and low of Rs 633.05 and Rs 336.05, respectively.