Mishra Dhatu Nigam Q4 Results: Defence Miniratna PSU Reports 21% YoY Rise in Net Profit to ₹56.19 Cr
Mishra Dhatu Nigam Limited (MIDHANI), the Defence Miniratna public sector undertaking (PSU) under the Ministry of Defence, reported its financial results for the fourth quarter of FY24-25 today. The company posted a 21% year-on-year (YoY) growth in net profit, touching ₹56.19 crore in Q4, compared to ₹46.34 crore during the same quarter last year. This robust performance highlights the PSU’s steady growth trajectory and increasing significance in India’s defence manufacturing ecosystem.
MIDHANI’s strong performance this quarter was fueled by increased demand from the defence and aerospace sectors, strategic orders, and operational efficiency. The firm, known for its specialization in high-performance alloys, superalloys, and materials critical for defence applications, continues to play a vital role in India’s journey toward self-reliance in strategic manufacturing.
Quarterly Financial Performance Highlights
| Financial Metric | Q4 FY24-25 | Q4 FY23-24 | YoY Change |
|---|---|---|---|
| Net Profit | ₹56.19 crore | ₹46.34 crore | +21% |
| Revenue | Data not provided* | – | – |
| EBITDA | Data not provided* | – | – |
*Note: Revenue and EBITDA figures were not disclosed in the press release but are expected to reflect positive trends aligned with profit growth.
Key Financial Ratios & Market Snapshot
| Particulars | Value |
|---|---|
| Market Capitalization | ₹7,827 crore |
| Current Market Price | ₹418 |
| 52-Week High / Low | ₹541 / ₹217 |
| Price to Earnings (P/E) | 78.0 |
| Book Value | ₹72.0 |
| Dividend Yield | 0.34% |
| Return on Capital Employed (ROCE) | 9.44% |
| Return on Equity (ROE) | 7.00% |
| Face Value | ₹10.0 |
These ratios reflect a company in a phase of consolidation and steady expansion, with high investor interest evident from its relatively high P/E ratio.
Growth Drivers Behind Q4 Performance
- Strong Defence Orders:
MIDHANI has benefitted from sustained demand from defence sectors including the Indian Navy, Army, and DRDO. This demand has translated into consistent order inflows for critical alloy materials. - Government Push for Aatmanirbhar Bharat:
With the Indian government promoting domestic defence production, companies like MIDHANI are gaining prominence. The Make in India initiative has opened new opportunities for indigenous production of complex materials. - Diversification Into Aerospace & Energy:
MIDHANI is also making strategic inroads into sectors like space exploration and nuclear energy, further diversifying its revenue base. - Capacity Expansion:
The company continues to upgrade and expand its manufacturing facilities, which is expected to improve economies of scale and cost efficiency in the coming quarters.
Stock Performance & Investor Sentiment
MIDHANI’s stock is currently trading at ₹418, which is nearly double its 52-week low of ₹217. Despite being below its 52-week high of ₹541, the stock has shown significant resilience and investor confidence, especially after the announcement of strong Q4 results.
The high P/E ratio of 78.0 suggests that investors are pricing in future growth potential, likely driven by upcoming defence projects and increasing exports.
Outlook Going Forward
MIDHANI is well-positioned to benefit from India’s growing defence budget, increased focus on indigenous manufacturing, and rising global demand for high-grade alloys. With plans to develop new materials and cater to global aerospace giants, the company is expected to maintain its upward momentum.
Analysts believe the stock remains a strong long-term play, especially for investors looking for strategic bets in India’s defence and industrial manufacturing sectors.
Q&A: Everything You Need to Know About MIDHANI’s Q4 Results
Q1: What was Mishra Dhatu Nigam’s net profit in Q4 FY24-25?
A: The company reported a net profit of ₹56.19 crore, marking a 21% YoY increase from ₹46.34 crore.
Q2: Why did MIDHANI see a rise in profit this quarter?
A: The profit rise is attributed to higher defence-related orders, operational efficiency, and government-led policy support for indigenous manufacturing.
Q3: What is MIDHANI’s current market price and market cap?
A: The current share price is ₹418 with a market capitalization of ₹7,827 crore.
Q4: Is the company’s valuation high?
A: Yes, the stock’s P/E ratio is 78.0, indicating strong investor expectations for future growth.
Q5: What sectors contribute to MIDHANI’s revenue?
A: The defence sector is the largest contributor, followed by aerospace, energy, and space exploration.
Q6: What is the dividend yield offered by MIDHANI?
A: The dividend yield stands at 0.34%.
Q7: What is the long-term outlook for MIDHANI?
A: With the government’s focus on self-reliance in defence and strategic materials, MIDHANI’s long-term outlook is positive. Capacity expansions and sector diversification also strengthen its growth potential.
Conclusion:
MIDHANI’s Q4 results reinforce its strategic role in India’s defence manufacturing. With consistent profitability and a strong order pipeline, it remains a stock to watch for long-term investors interested in the defence and aerospace sectors.
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