Synopsis: Hilton Metal Forging Ltd is in focus as its ₹28 crore rights issue has been approved by NSE and BSE. Of this, Hilton will use ₹10 crore to reduce bank and NBFC debt, strengthening the balance sheet and is expected to enhance profitability in FY 2026–27.
The shares of the company, specializing in manufacturing and exporting iron and steel forged products, including flanges, forged fittings, valve bodies, and railway wheel components, are in focus as it plans to cut debt through proceeds from the upcoming rights issue and followingly boost profitability.
With a market capitalization of Rs. 82.89 Crores on the Day’s Trade, the shares of Hilton Metal Forging Ltd jumped upto 3.2 percent, reaching a high of Rs. 24.95 compared to its previous close of Rs. 24.17.
Hilton Metal Forging Ltd, engaged in manufacturing and exporting iron and steel forged products, including flanges, forged fittings, valve bodies, and railway wheel components,has also received in-principle approval from both the National Stock Exchange of India and the BSE Limited for the issue aggregating to Rs. 28 crore.
Out of the total proceeds, Rs. 10 crore will be utilised toward the reduction of outstanding debt with banks and NBFCs. This deleveraging is expected to strengthen the Company’s balance sheet and enhance profitability in FY 2026–27. Hilton Metal Forging Ltd is holding a board meeting today to approve and discuss the terms, record date and more, which will be announced soon.
Company Overview, Financials & more
Hilton Metal Forging Ltd is an Indian public limited company headquartered in Mumbai, Maharashtra. It is listed on Indian stock exchanges and operates in the metals & mining/forging industry, manufacturing and selling a wide range of iron and steel forged components for sectors such as oil and gas, refineries, railways, petrochemicals, and marine.
The company’s product portfolio includes forged flanges and fittings, threaded and weld neck flanges, cruc shafts and other engineered parts, with both domestic sales and international exports.
The company’s Revenue from Operations rose to Rs. 69.84 crore from Rs. 40.29 crore, registering a strong growth of around 73 percent year-on-year. Total Income increased to Rs. 70.17 crore compared to Rs. 40.72 crore last year, reflecting a healthy growth of approximately 72 percent.
Its Profit Before Tax (PBT) surged to Rs. 1.37 crore from Rs. 0.54 crore, marking a sharp rise of nearly 155 percent. Profit After Tax (PAT) grew even stronger to Rs. 1.42 crore versus Rs. 0.45 crore in the previous year, delivering an impressive 212 percent growth.
The company’s profitability improved meaningfully, with PAT margin expanding to ~2.02 pecrent from ~1.12 percent, reflecting a margin expansion of about 90 basis points, indicating better operational efficiency and improved cost management.
Hilton Metal Forging looks undervalued compared to its peers; its P/E of 10 is far below the industry P/E of 26, and the PEG ratio of 0.41 signals strong growth potential. It has delivered a 31.9% CAGR in profit growth over the last five years, and its trading at 0.70 times book value adds a margin of safety.
Its financial performance is steady, with ROCE at 7.92% and ROE at 5.75%. The debt-to-equity ratio of 0.57 shows manageable leverage, and returns are moderate, indicating room for improvement. Overall, strong growth and low valuation make it appealing.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Stock in Focus as it plans to cut debt through proceeds from the upcoming rights issue appeared first on Trade Brains.