Buy Mishra Dhatu Nigam; target of Rs 375: ICICI Securities

ICICI Securities is bullish on Mishra Dhatu Nigam has recommended buy rating on the stock with a target price of Rs 375 in its research report dated February 07, 2025.

Broker Research

February 09, 2025 / 20:45 IST

BUY

26 Aug, 2025 12:21

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ICICI Securities's research report on Mishra Dhatu Nigam

Mishra Dhatu Nigam (MIDHANI) reported an impressive Q3FY25 performance. Key points: 1) Lower cost and higher recycling resulted in EBITDA growth of 46% YoY despite 6% YoY decline in revenue; 2) traction from exports visible; 3) value of production (VoP) was down 13% YoY to INR 2.6bn; and 4) orderbook stood robust at INR 19.4bn, implying book/bill (ttm) at 1.8x. Going ahead, we see ramp-up of newly commissioned 500tpa VAR and focus on cost and inventory to be the key growth drivers. We roll over valuation to FY27E; however, factoring in the risk from volatility in currently low (imported) raw material prices,

Outlook

we lower valuation multiple to 17x (earlier 20x). Our revised TP works out to INR 375 (earlier INR 355) on 17x FY27E EBITDA. Upgrade MIDHANI to BUY (from Add).

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