Why has Mishra Dhatu or Midhani rallied so sharply on Thursday?

Mishra Dhatu Nigam Ltd has rallied by nearly 10% on 01 April. This was after the company recorded highest ever provisional revenues of Rs.810 crore for the financial year 2020-21. This is sharply higher than its FY20 revenues reported for the previous full year. For the Mar-21 quarter, MIDHANI showed 67% yoy growth in provisional sales at Rs 346 crore indicating that most of the performance of FY21 was back-ended in the last quarter of the year.

What is gratifying is that the higher sales was actually achieved notwithstanding the disruption in mining production for almost 45 days during the first quarter of FY21. In addition, the lag effect also lost for another quarter. During this period, the company placed special emphasis on cost reduction to get through troubled times. Trading volumes also doubled on Thursday and Midhani is even likely to benefit from its defence sector focus.