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Shares of Sunflag Iron and Steel soared 18 per cent to hit a record high of Rs 118.90 on the BSE in Tuesday’s intra-day trade. The stock has extended its previous two-week rally on the back of heavy volumes.


The stock has zoomed 89 per cent in 11 trading days from Rs 63.05 on March 31, 2022. In comparison, the S&P BSE Sensex was down 2.5 per cent during the same period.





At 11:04 am; Sunflag Iron and Steel traded 14 per cent higher at Rs 115.25, against 0.11 per cent decline in the benchmark index. The trading volumes on the counter jumped 1.5 times as around 6 million equity shares changed hands on the NSE and BSE.


The BSE has sought clarification from Sunflag Iron and Steel Company on April 19, 2022, with reference to movement in volume.


Sunflag Iron and Steel is engaged in manufacturing of mild-steel and alloy steel products like carbon steel, free & semi free cutting steels, micro-alloyed steel, stainless steel, spring steels, valve steel, bearing steels, quality steels, tool steel etc.


The product range of the company include rolled products, billet/bloom, ingots, and bright bars of varied shape and size range. The products are mainly used for manufacturing automotive transmission gears, drive shafts, steering system, bearings, exhaust system and other engine components. The company also supplies to Indian Railways, ordnance factories, power sectors and other general engineering areas to manufacture critical application components.


The company reported strong set of earnings for the first nine months (April-December) of the financial year 2021-22 (9MFY22). While the consolidated net profit more-than-doubled at Rs 175.75 crore, revenue from operations jumped 53 per cent to Rs 2,049 crore from Rs 1,335 crore during the same period of last fiscal.


Meanwhile, CARE Ratings reaffirmed the credit rating for the Sunflag Iron and Steel’s proposed Commercial Paper (CP) issue of Rs 100 crore.


“The company has strong liquidity position marked by unencumbered cash and bank balance of around Rs 131 crore as on September 30, 2021 against which the company has a debt repayment obligation of Rs 13.48 crore for the year FY22. This apart, the company is expected to have cash flow from operations to the tune of Rs 275 crore for FY22. Also, the fund based working capital limits of the company have remained very less utilized nearly at 26.14 per cent for last 12 months ending October 2021,” the ratings agency added.

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