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Technical Outlook

• The share price of Mishra Dhatu Nigam has recently generated a resolute breakout above 30 months triangular consolidation with strong volume of more than double of its 10 months average volume of 0.2 crore share per week signalling resumption of up move

• The stock has retraced its 28 month’s corrective decline (| 278- 156) in just six months signalling faster retracement indicating structural turnaround

• Last six week’s breather towards the major breakout area provides fresh entry opportunity for target of | 295 as it is the range implication of two year range (225-155)

Fundamental Outlook

• Mishra Dhatu Nigam (Midhani) 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 | 1501 crore compared to | 1359 crore as on July 1, 2022. In terms of order book break-up, ~55% is from the defence segment, ~35% is from the space segment while balance ~10% is from others

• The wide plate mill of Midhani is currently under trial runs. Once the wide plate mill is fully ramped up it is expected to generate revenue to the tune of ~| 500 crore. The | 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

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