Vardhman Special Steel (VSSL) is one of India’s leading steel bar producers for automotive applications. It has exclusive product offerings which include steel bars and rods and bright bars of various categories of special and alloy steel. NS multibagger stock So far this year it has given more than 135% return while in one year period it is more than 270%.
all around ₹67 per share in October 2020, the stock is currently trading ₹265 per. The share price of VSSL has risen almost 3.9x in the last 12 months. Brokerage and research firm ICICI Securities remains positive on the stock and maintains its buy rating. its target value is ₹340 per share (approximately 30% potential upside) with a tenor of approximately twelve months.
VSSL reported stable operating performance in Q2FY22. The company’s topline came ₹336 crore, up 36% on a year-on-year (YoY) basis while its net profit for the second quarter was ₹24 crore, up 172% on a year-on-year basis but down 13% on a sequential basis.
In June 2021, VSSL was granted Environment Clearance (EC) for capacity expansion at its existing plant in Ludhiana. With this approval, according to ICICI Securities, the way has been cleared for an increase in capacity which could act as a key trigger for future performance.
The note added that during FY21-23E, the brokerage expects VSSL’s topline to grow at a CAGR of 25%, while EBITDA and PAT are expected to register a CAGR of 35% and 64%, respectively.
Apart from VSSL, ICICI Securities said it also prefers Tata Metaliks (TML) as by Q4FY23, Tata Metaliks plans to double the ductile iron (DI) pipe capacity to 4 lakh tonnes. Near Brokerage House. The recommendation is to buy on a stock with a target price of ₹1,300 per share.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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