Shares of S.A.L Steel Limited jumped 4.63% on BSE on 19th September after the company agreed to a 3 year agreement with AIA Engineering on 16th September.
The stock opened at Rs.11.30 with an increase of 0.50 against the previous close of Rs.10.80. In the last one month, the stock has jumped 36.14%. However, it is still 28.7% down from its 2022- highest of Rs.15.85 that it hit on January 11.
On september 16th, with an objective to provide ferro chrome to AIA Engineering on a non-exclusive basis, SAL Steel and AIA Engineering have agreed into a supply agreement lasting three years.
Consequently, AIA Engineering has also consented to give the firm a secured Inter Corporate Deposit in the amount of Rs. 125 crore, which would be utilized by the company to pay back its loan and meet its working capital needs.
The board of directors of SAL Steel Ltd. had approved secured borrowing of funds via inter corporate loans for an amount of Rs. 125 crore on September 14.
Additionally, the stock gave a 3 year return of 227.27% as compared to Nifty Smallcap 100 which gave a return of 78.12%. On the other hand, the company's annual revenue growth of 65.56% outperformed its 3 year CAGR of -2.42%.
After reaching a 52-week high of ₹16.6 on January 12, the stock continued to fall and remained in the same trend until August end of this year. However, the buying pace picked up since starting of September, and the stock saw positive gains of over 36.14% to date.
SAL Steel is a multifaceted steel, ferro alloys, and power company with a market capitalization of 963.52 million operating close to the Kandla Port in Gujarat, Western India. Direct Reduced Iron, Ferro Alloys, Iron Ore Pellets, and different finished steel products make up their product line.