Mishra Dhatu Nigam Share Price Soars Over 6% to 9-Month High After Q4 Earnings, Up 42% in May

Hyderabad, May 29, 2025 — Shares of Mishra Dhatu Nigam Ltd. (MIDHANI) surged over 6% intraday on Wednesday to hit a fresh 9-month high, following the announcement of its robust Q4 FY24 earnings. The stock, listed on both NSE and BSE, touched ₹478.70 in early trade — its highest level since August 2024. With today's rally, the defense PSU has now gained a staggering 42% in the month of May alone, outperforming benchmark indices and its sectoral peers.

A Stellar Quarter: Q4 FY24 Highlights

MIDHANI reported a net profit of ₹103.6 crore for the quarter ended March 2024, marking a sharp 32% year-on-year (YoY) growth. Revenue from operations came in at ₹358.9 crore, up 28.5% compared to ₹279.2 crore in Q4 FY23. The performance was driven by improved order execution, rising demand in the defense and aerospace sectors, and better capacity utilization at its Hyderabad facility.

EBITDA stood at ₹126.4 crore, up 35% YoY, while margins improved to 35.2%, reflecting operational efficiency and cost management. The board also recommended a final dividend of ₹1.65 per share, enhancing investor sentiment further.

Investor Buzz: Strong Momentum Fuels Rally

Investor interest in MIDHANI has been steadily building in recent weeks, especially after the company's strong earnings guidance for FY25. With multiple order wins from the Indian Navy, ISRO, and DRDO, the company has hinted at a robust pipeline for the upcoming fiscal.

Market participants attribute the May rally to a mix of strong fundamentals, sector tailwinds, and improving financials. As of today, the stock has climbed over 90% from its 52-week low of ₹251, logged in late November 2024.

Sector Outlook: Defense Manufacturing in Focus

The broader defense and aerospace segment has been on the radar for investors amid the Indian government’s consistent push for indigenization. MIDHANI, being one of the key suppliers of specialty alloys and superalloys to the defense, aerospace, and nuclear sectors, is well-positioned to benefit.

The Ministry of Defence’s increased capital expenditure allocation for FY25, along with the emphasis on “Atmanirbhar Bharat”, has created a favorable backdrop for companies like MIDHANI. Analysts are expecting double-digit growth in order books for defense PSUs, especially those dealing with advanced materials and strategic components.

Technical Analysis: Bullish Indicators in Play

From a technical standpoint, MIDHANI has broken out of a long consolidation phase and is currently trading well above its 50-day and 200-day moving averages. RSI is hovering near 72 — suggesting that while the stock is in overbought territory, the momentum remains firmly positive.

Volumes have surged over the last few sessions, signaling strong institutional and retail participation. Analysts expect the next resistance to be around ₹490, with support placed near ₹445.

Brokerage Views: Upgrade and Target Revisions

Following the Q4 results, several domestic brokerages have upgraded the stock with “Buy” or “Accumulate” ratings, citing earnings visibility and strong order flow.

• Motilal Oswal revised its target to ₹515, citing “robust earnings and long-term structural tailwinds.”

• ICICI Securities maintained a "Buy" call with a target of ₹500, emphasizing strong EBITDA margins and steady growth in defense orders.

• Axis Capital added MIDHANI to its “Top PSU Picks” list, highlighting the company’s dominant position in strategic materials.

What’s Driving Growth?

The primary drivers behind MIDHANI’s strong performance include:

• Diversified Product Portfolio: Catering to high-growth sectors like defense, space, and nuclear.

• Government Focus on Indigenization: Boosting demand for home-grown advanced materials.

• Operational Efficiency: Better utilization of its melting and forging capacity.

• R&D Initiatives: Investment in new alloy development for hypersonic and space-grade materials.

Moreover, the company’s collaborations with research institutions and defense labs have accelerated the introduction of new-generation alloys, placing it ahead of private competitors.

Management Commentary: Confidence in Future Outlook

In the Q4 earnings call, CMD Dr. Sanjay Kumar Pattnaik stated, “FY24 has been a transformative year for MIDHANI. We’ve strengthened our manufacturing capabilities and achieved record order execution. The pipeline for FY25 looks promising, and we are targeting double-digit growth across verticals.”

He also mentioned that the company is actively exploring export opportunities and expanding into emerging markets like the Middle East and Southeast Asia.

Dividend and Buyback Speculation

Following the announcement of a final dividend, there’s also market speculation about a potential share buyback later this year, though management hasn’t confirmed this. Analysts believe that the company’s cash-rich balance sheet and improved free cash flows could support such a move.

Institutional Holdings on the Rise

Institutional investors have increased their stake in MIDHANI over the past two quarters. As per the latest shareholding pattern, mutual funds now hold 7.6%, up from 6.2% in Q3, while foreign institutional investors (FIIs) have marginally raised their holding to 3.4%.

This reflects growing confidence among large investors, who see MIDHANI as a long-term bet on India’s defense manufacturing self-reliance.

What to Watch Next?

Looking ahead, investors will be watching for:

• New order announcements, particularly from ISRO and DRDO.

• Updates on MIDHANI’s expansion projects in Telangana.

• Export deals and progress in international markets.

• Government policy changes around defense procurement.

MIDHANI has also hinted at a possible product line expansion, which could open new revenue streams in industrial and commercial sectors outside defense.

A PSU Stock in Resurgence

With a 9-month high, 42% surge in May, and a robust financial report card, Mishra Dhatu Nigam has entered a new growth phase. Investors looking for a solid PSU play with exposure to defense, aerospace, and critical material manufacturing might find MIDHANI a compelling addition to their portfolio.

The current momentum, backed by strong fundamentals, points toward further upside potential — especially in the backdrop of India’s heightened focus on indigenous defense capability.