Tata Metaliks share price jumps 6% after posting Rs 94-crore profit in June quarter
Tata Metaliks Limited, a subsidiary of Tata Steel, has reported a net profit of Rs 94.72 crore for the June quarter against a loss of Rs 12.36 crore in the same period last year
July 14, 2021 / 10:49 AM IST
Tata Metaliks. (Image: tatametaliks.com)
Tata Metaliks share price jumped more than 6 percent in the morning trade on July 14, a day after the Tata Steel subsidiary reported a net profit of Rs 94.72 crore for the first quarter ended June 2021 against a loss of Rs 12.36 crore in the same period last year.
Backed by higher sales and price realisation, the company's revenue from operations stood at Rs 603 crore and profit before tax (PBT) at Rs 135 crore for the quarter ending June 30.
"Demand for pig iron got impacted adversely in Q1 due to Covid second wave as major foundry clusters operated at 30-40 percent capacity. However, the company achieved the highest ever quarterly deliveries on the back of a jump in exports," a company official said.
"Record sales volumes coupled with strong price realisation, along with stable blast furnace operations, raw materials cost optimisation and higher coal injection have helped the company achieve its best ever quarterly profits," the official said.
The stock was trading at Rs 1,280.65, up Rs 78.60, or 6.54 percent, at 1024 hours. It touched an intraday high of Rs 1,299 and an intraday low of Rs 1,230.
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According to Sameet Chavan, Chief Analyst, Technical and Derivatives at Angel Broking, one can buy the stock in the short term with the target at Rs 1,308.
"The stock has already given a four-fold return in this period and it’s not done yet. The stock slipped into a consolidation mode after registering a new high in the early part of May," he said. The price action is accompanied by sizable volumes, Chavan added.Disclaimer: The views and investment tips expressed by experts on moneycontrol.com are their own, and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.