ISMT share price rallies 4% after Maharashtra solar plant installation

ISMT stock surges: Shares of Indian Seamless Metal Tubes (ISMT) surged as much as 4.14 per cent to hit an intraday high of Rs 136.80 per share on Tuesday. 

The uptick in share price came after the company announced that it has completed the  installation of a 35 MW DC capacity solar plant worth Rs 138 crore at Maharashtra. 

In an exchange filing, ISMT said, “This is to inform that the installation of the Solar Plant situated at Mantha, Helas, Jalna 431504, Maharashtra has been completed in Phase I with the capacity of 35 MW DC (out of total project capacity of 70 MW DC) and the operations of the Solar Plant have commissioned from July 1, 2024 upon receipt of the commencement certificate issued by ‘Maharashtra State Electricity Distribution Company Limited.”

 

The sum of around Rs 138 crore (net of recoverable taxes) has been incurred till date towards the capital expenditure and the same has been financed through internal accruals, ISMT said. 

ISMT further claimed that the operations of the solar plant will benefit the company by way of reduction in the power costs.

Established in 1977, ISMT Limited, headquartered in Pune, operates as a subsidiary of Kirloskar Ferrous Industries Limited. 

The company specialises in manufacturing and distributing seamless tubes and engineering steels across various sectors in India. ISMT operates through two primary segments: Tubes and Steel.

Within its product offerings, ISMT provides a range of carbon, alloy, and martensitic stainless steel bars, including specialised grades such as ultra-clean steels and free machining steels. Its product line caters to industries including oil and gas, power generation, construction equipment, automotive, general engineering, bearings, and others.

ISMT's portfolio includes OCTG (Oil Country Tubular Goods) products, high collapse casing pipes, automotive components, seamless tubes for hydraulic and pneumatic applications, tubes for mining and drilling, hollow bars, and tubes for the power generation sector.

In addition to these offerings, ISMT manufactures components such as starter gears and spindle axles for automobiles, cages for constant velocity joints, multi-track sleeves for linear bearings, and various specialised tubes. 

These specialised products are used in hydraulic cylinders, structural applications in office buildings, industrial structures, bridges, airport terminals, agricultural equipment, machine buildings, offshore installations, sports complexes, stadiums, locomotives, shipbuilding, and material handling industries.

The company also engages in exporting its diverse range of products, contributing to its presence in global markets

The market capitalisation of the company is Rs 4,109.36 crore, according to Bombay Stock Exchange (BSE).

The 52-week high of the stock is Rs 139.80 per share while its 52-week low is Rs 69. 

At 10:10 AM, shares of ISMT were trading 4.11 per cent higher at Rs 136.75 per share. In comparison, BSE Sensex was trading flat at 79,470.38 levels.