Synopsis: EMS Ltd and MM Forgings Ltd surged after board approvals to raise a combined Rs. 900 crore via QIP and other routes, signalling expansion plans, improved growth outlook, and strong investor sentiment toward infrastructure and industrial sectors.
These infrastructure and industrial stocks are drawing fresh investor attention as companies look to strengthen their balance sheets and fund future expansion. Capital raising through institutional routes is increasingly being seen as a strategic move to support long-term growth and scalability.
In this context, two small-cap players have announced plans to raise a combined Rs. 900 crore, highlighting their intent to capitalise on sectoral opportunities and enhance operational capacity going forward.
EMS Ltd
EMS Ltd is an India-based engineering, procurement, and construction (EPC) company primarily focused on water and wastewater infrastructure projects. Its services include sewerage systems, water supply schemes, and treatment plants for government bodies. The company benefits from rising public investment in urban infrastructure and has a strong order book driven by municipal and state-level projects.
With a market capitalisation of Rs. 1,643 cr, the shares of EMS Ltd were trading at Rs. 296 per share, increasing 6% in today’s market session, making a high of Rs. 302, up from its previous close of Rs. 283.70 per share. Board approved to raise up to Rs. 300 crore through the issuance of equity shares via Qualified Institutional Placement (QIP), in one or more tranches.
MM Forgings Ltd
MM Forgings Ltd is a leading manufacturer of forged components mainly used in the automotive and industrial sectors. The company supplies crankshafts and other critical parts to global OEMs, especially in the commercial vehicle segment. With a strong export presence, it focuses on high-quality precision engineering and long-term relationships with international customers.
With a market capitalisation of Rs. 2,036 cr, the shares of MM Forgings Ltd were trading at Rs. 421.85 per share, increasing 4% in today’s market session, making a high of Rs. 431.90, up from its previous close of Rs. 415.90 per share.
The company has approved raising up to Rs. 600 crore through the issuance of equity shares or other convertible securities, including debentures, warrants, or preference shares, via one or more tranches using permissible routes such as Qualified Institutional Placement (QIP) or other methods, subject to regulatory and shareholder approvals. This is an enabling approval, with the Board retaining flexibility to decide the timing, size, and structure of the issue based on market conditions, pricing, and dilution considerations.
Financials
EMS reported a weak performance in Q3FY26, with revenue declining about 18% YoY to Rs. 200 crore from Rs. 245 crore in Q3FY25. Profitability was significantly impacted, as EBITDA dropped sharply by around 57% YoY to Rs. 30.7 crore. Net profit fell by approximately 62% YoY to Rs. 19.3 crore, while EPS also declined by about 63% to Rs. 3.39, reflecting substantial pressure on both margins and earnings.
M M Forgings reported a mixed performance for Q3FY26, with revenue growing about 11% YoY to Rs. 414 crore from Rs. 374 crore in Q3FY25. Profitability declined, as EBITDA fell around 5% YoY to Rs. 69.3 crore, indicating margin pressure. Net profit saw a sharper drop of nearly 34% YoY to Rs. 17.6 crore, while EPS also declined by about 33.8% to Rs. 3.64, reflecting weaker earnings despite topline growth.
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