Midhani gains 4%; Firm to inaugurate wide plate mill facility today

Going forward, as facilities ramp up production, additional revenue is expected is likely to flow from wide plate mill as well as the Rohtak plant, thereby providing healthy revenue visibility.

Shares of Mishra Dhatu Nigam (Midhani) gained up to 4 per cent at Rs 210 on the BSE in Tuesday’s intra-day trade ahead of inauguration of its wide plate mill facility today, by Hon’ble President of India, Smt. Droupadi Murmu.

Midhani has set up a key facility wide plate mill at its existing Hyderabad plant with an investment of around Rs 500 crore for rolling of slabs of various alloys.

The three metre width of the plate, which can be rolled in the newly commissioned mill, makes it unique globally. Due to its very high capacity of rolling force, this mill can roll ultra-high strength steel to very low thickness. The technology for processing superalloys plates has been established in a very short span of time.

Midhani has established the technology to produce high strength Titanium alloys for space, nuclear and defence applications. The company is a leading manufacturer of special steel, super alloys and titanium alloys catering to niche end-user segments like space, defence, etc. Midhani’s product range includes super alloys, titanium and titanium alloys, special purpose steels and other special alloys.

As on October 1, 2022, Midhani’s order book was at Rs 1,501 crore compared to Rs 1,359 crore as on July 1, 2022. In terms of order book break-up, around 55 per cent is from the defence segment, around 35 per cent is from the space segment while balance around 10 per cent is from others.

According to ICICI Securities, once the wide plate mill is fully ramped up it is expected to generate revenue to the tune of around Rs 500 crore. The Rs 500 crore annual revenue run rate from the wide plate mill is expected reached in FY24E, once the entire product range is established.

Going forward, as the facilities ramp up production, additional revenue is expected is likely to flow from wide plate mill as well as the Rohtak plant, thereby providing healthy revenue visibility for the company, the brokerage firm said.