Down 45% from 52-week high, This multibagger PSU to trade ex-dividend today; check target

Midhani shares dividend: Shares of Mishra Dhatu Nigam (Midhani) shall trade ex-dividend today as the state-run defence player had an interim dividend for their eligible shareholders of the company. The PSU player had announced the dividend and record date earlier this month.

The board of directors of the company at its meeting held on March 19, 2025 has inter alia approved declaration of interim dividend Rs 0.75 per equity share, or 7.5 per cent of Rs 10 for the financial year 2024-25, said Midhani in an exchange filing with the bourses.

Shares of Mishra Dhatu Nigam Ltd settled at Rs 297.30 on Tuesday, rising about 3.66 per cent for the day. The total market capitalization of the company stood close to Rs 5,600 crore mark. The stock has surged nearly 230 per cent from its IPO price of Rs 90 apiece. The company had launched its Rs 438.38 crore IPO in April 2018.

However, the stock is down 18 per cent in the last one year. It has crashed nearly 45 per cent from it is all time high of Rs 541, hit in July 2024. The stock is down 13 per cent in the year 2025 so far. The stock has gained more than 14 per cent in the last one month, while it is up 70 per cent in the last five years.

Incorporated in 1973, Hyderabad based Mishra Dhatu Nigam is a mini-ratna PSU player engaged in the business of manufacturing of special steels, superalloys and titanium alloys in India. These high value products cater to niche sectors including defense, space and power.

Midhani reported a net profit of Rs 25.52 crore in the December 2024 quarter, reporting a 99.38 per cent rise on a year-on-year (YoY) basis. Its Ebitda came in at Rs 59.72 crore, rising 46 per cent YoY, while its revenue from operations dropped 5.13 per cent YoY to Rs 245.24 crore for the quarter.

Mishra Dhatu Nigam reported an impressive Q3FY25 performance on the back of lower cost and higher recycling resulted in EBITDA growth of 46 per cent YoY; traction from exports visible; value of production (VoP) was down 13 per cent YoY; and orderbook stood robust at Rs 19,400 crore, implying book/bill (ttm) at 1.8 times, said ICICI Securities in post Q3 results review.

"We see ramp-up of newly commissioned 500tpa VAR and focus on cost and inventory to be the key growth drivers. We roll over valuation to FY27E; however, factoring in the risk from volatility in currently low (imported) raw material prices, we lower valuation multiple to 17 times. Our revised target price works out to Rs 375," it added, upgrading the stock to 'buy' rating.