Megatherm Induction Ltd (NSE – ST: MEGATHERM): According to exchange records, the most prominent investor Ashish Kacholia purchased around 3.16 lakh shares in the Megatherm Induction Ltd company, valued at around the sum of 7.12 crore.
Megatherm’s shares jumped 5 percent after he bought shares in the company. The shares ended at the top of the circuit, on Friday.
On Friday, the stock rose by 5 percent before closing at Rs 252.60.
Megatherm Induction shares went on the market earlier this week, with the highest price of 108 percent.
The price climbed further following the announcement and is currently trading at 252.60 approximately 133 percent higher than the price of the issue.
IPO
Its IPO was a brand-new equity offering of about 42.9 lakh equity shares. The highest price of Rs 108.
The net proceeds of the IPO will be used to fund capital requirements to construct an industrial shed for working capital requirements and general corporate needs.
It is engaged in the production of equipment for melting and heating induction that is powered by electric induction like induction melting furnaces as well as heating equipment induction.
In addition to heating and induction melting equipment Megatherm also manufactures a variety of downstream and upstream plants as well as steel melt shop-related machinery like transformers as well as ladle refining furnaces, continuous casting machines, fume extraction systems, and so on.
Making Electric Arc Furnaces
Megatherm is also engaged in making electric arc furnaces to serve the industries that make special steel and alloys.
Its portfolio of services includes turn-key solutions for plants that use steel, including design and engineering, supply, construction, and commissioning of steel melting workshops using outsourced and insourced equipment and machinery, as well as maintenance contracts and spare parts for business.
Industry Is Growing
The secondary steel industry is growing and is expected to play an important role in the manufacturing of steel in India due to the expanding use of scrap-based production.
Numerous new capacity production facilities are being built to meet rising demand.
The company made a profit of approximately 146.8 crore and a net profit of Rs 7.59 crore in the period which ended in September 2023.
Hem Securities acted as the principal manager of the issue, while BigShare Services was the registrar.
About Megatherm Induction Ltd Company
Megatherm Induction Limited deals in Metal Heating & Melting Equipment and can tackle Thermal Challenges by using Induction. The company was established in 2010.
The company produces induction heating and melting equipment that use electrical induction like induction melting furnaces as well as heating equipment that uses induction.
Fundamental Analysis of Megatherm Induction Ltd
| Market Cap | ₹ 476 Cr. |
| Current Price | ₹ 253 |
| 52-wk High | ₹ 253 |
| 52-wk Low | ₹ 195 |
| Stock P/E | 34 |
| Book Value | — |
| Dividend | 0.00 % |
| ROCE | 30.1 % |
| ROE | 32.1 % |
| Face Value | ₹ 10.0 |
| P/B Value | — |
| OPM | 10.4 % |
| EPS | — |
| Debt | ₹ 44.8 Cr. |
| Debt to Equity | 0.77 |
Megatherm Induction Ltd Share Price Target 2024 To 2030
| Year | 1st Target | 2nd Target |
| 2024 | ₹260 | ₹284 |
| 2025 | ₹300 | ₹322 |
| 2026 | ₹350 | ₹385 |
| 2027 | ₹400 | ₹454 |
| 2028 | ₹500 | ₹522 |
| 2029 | ₹530 | ₹564 |
| 2030 | ₹598 | ₹624 |
Megatherm Induction Ltd Share: Last 5 Years’ Financial Condition
To gain a better understanding of how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 4 Years’ Sales:
| 2020 | ₹ 132 Cr |
| 2021 | ₹ 109 Cr |
| 2022 | ₹ 188 Cr |
| 2023 | ₹ 266 Cr |
Last 4 Years’ Net Profit:
| 2020 | ₹ 6 Cr |
| 2021 | ₹ 3 Cr |
| 2022 | ₹ 1 Cr |
| 2023 | ₹ 14 Cr |
Last 3 Years’ Debt-To-Equity Ratio:
| 2021 | 1.23 |
| 2022 | 1.1 |
| 2023 | 0.85 |
Last 10 Years’ Profit Growth:
| 10 Years: | — |
| 5 Years: | — |
| 3 Years: | 36% |
| Current Year: | 961% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | — |
| 5 Years: | — |
| 3 Years: | 16% |
| Last Year: | 32% |
Sales Growth Over 10 Years:
| 10 Years: | — |
| 5 Years: | — |
| 3 Years: | 26% |
| Current Year: | 42% |
Company’s Positive Signs:
- The company’s days of debtors have risen between 54.4 to 31.9 days.
- The company’s requirements for working capital are now down to 47.9 days to 12.2 days.
Company’s Negative Signs:
- The company’s percentage of promoters who hold a share has dipped in the last period at -26.2 percent.
Conclusion
This article is a complete guide about Megatherm Induction Ltd Share.
These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
Also, We have talked in detail about the share’s future prospects and growth potential.
Hopefully, these informations will help you in your further investment.
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