Shares of Vardhman Special Steels Ltd recorded a new 52-week high on Wednesday, gaining over 4%, following the news that the company has started mass production of steel for forging companies of Aichi Steel Corporation based in South East Asia for which, it has received approvals on some grades.
Aichi Steel Corporation, a group company of Toyota Motor Corporation, was established in 1934, to produce high quality alloy steel for automobiles and conduct research & development activities to improve the quality of steel and enhance the productivity.
Commenting on this development, Sachit Jain, Vice Chairman & Managing Director of the company, in an exchange filing, said, "This is a historic moment for the company as we have started mass production of steel for Toyota. This will establish the company and India as a supplier of high-quality automotive steel. This is one of the biggest landmark events in the history of the company and a matter of great pride for our country."
According to brokerage ICICI Direct Research's report, these products will sell for about 10,000 tonnes in the years FY23 and FY24. With more approvals coming in over the next two to three years, it is anticipated to rise even further. This is consistent with the company's goal to boost export volumes from the present level of just under 5% in FY22 to 20-25% by FY25.
On the technical front, the stock price rose 48% and outperformed its sector by 45.8% in the past year, and the weekly average delivery volume is 45.28%.
According to analysts, overall, the stock is in an uptrend, and the next support is at ₹340 level, and the resistance is at ₹375 level.
