Steelcast rose 1.47% to Rs 27.55 at 14:04 IST on BSE after the company announced raising its plant capacity by 8,000 tons by October 2013 to take total capacity to 30,000 tons at its current location in Bhavnagar.
The announcement was made during trading hours today, 25 September 2013.
Meanwhile, the S&P BSE Sensex was down 229.05 points or 1.15% at 19,691.16.
On BSE, 1,685 shares were traded in the counter as against average daily volume of 4,076 shares in the past one quarter.
The stock rose as much as 3.31% at the day's high of Rs 28.05 so far during the day. The stock rose 1.28% at the day's low of Rs 27.50 so far during the day. The stock had hit a 52-week low of Rs 24 on Tuesday, 24 September 2013. The stock had hit a 52-week high of Rs 61 on 15 October 2012.
The stock had underperformed the market over the past one month till 24 September 2013, sliding 3.38% compared with the Sensex's 7.56% surge. The scrip had also underperformed the market in past one quarter, declining 22.87% as against Sensex's 7.44% gain.
The small-cap company has equity capital of Rs 9.11 crore. Face value per share is Rs 5.
Steelcast said that the company has invested more than Rs 100 crore so far in raising its capacity from 10,000 tons to 30,000 tons in last three years. Last year, the company had invested around Rs 45 crore while this fiscal it will be investing another Rs 23 crore, Steelcast said.
Elaborating on company's strategy, Mr. Chetan Tamboli, CMD, Steelcast said, "With this brown-field capacity expansion being over by October 2013, we will be one of the few companies in the world making niche product for mining & construction equipment companies worldwide."
Tamboli added, "With increased capacity, we are also eyeing higher export share as we believe that from 2015 onwards, India is likely to be a beneficiary as exports revive on the back of strong demand from developed economies. Simultaneously, domestic demand will go up as major infrastructure projects are expected to take off. Moreover devaluation of rupee too will aid us going forward."
As on 31 March 2013, exports constituted 53% of Steelcast's total sales. The company aims to take this up to 65% of total sales by 31 March 2015.
Steelcast's net profit surged 35.6% to Rs 4 crore on 10.3% decline in net sales to Rs 54.51 crore in Q1 June 2013 over Q1 June 2012.
Steelcast is India's leading steel castings manufacturing company in the earthmoving equipment sector. The company is engaged in the production of sand castings and shell castings through product mix of carbon steel, low alloy steel and high alloy steel. It has formed JV with a US company to tap the huge potential for castings in the US, especially the US Railways for freight transport.
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