Shares of Surya Roshni hit a 14-month high of Rs 711.35, surging 10% on the BSE in intraday trade on Friday in an already subdued market. The stock was quoted 7% higher at Rs 693 at 11:54 am, while the S&P BSE Sensex fell 0.28%.

The stock is currently trading at its highest level since October 2021. It hit an all-time high of Rs 868 on October 4, 2021. The company is the largest exporter of ERW pipes, the largest producer of ERW GI pipes and one of the largest lighting companies in India.

Over the past six months, the stock has more than doubled, or 101%, in improving financial performance. The S&P BSE Sensex gained 1.5% over the same period.

In the October-December quarter (Q3FY23), Surya Roshni’s consolidated net profit doubled to Rs 90 crore on strong operating performance. It posted a PAT of Rs 40 crore in Q3FY22. Revenue was flat at Rs 2,021 crore compared to Rs 2,030 crore a year earlier. Ebitda rose 65% year-on-year to Rs 164 crore.

The company reported solid year-to-date (YTD) year-over-year growth momentum driven by comprehensive value-added products. Stable input costs led to a substantial improvement in gross margin.

For the nine months (April-December), the company’s net profit rose 47% year-on-year to Rs 180 crore. Ebitda rose 24% year-on-year to Rs 366 crore, while revenue rose 8% to Rs 5,845 crore.

Management said the company continues to report a healthy set of numbers and improvements in year-to-date operating parameters. Financial performance was further driven by stable input costs, the festive season and continued improvement in the product mix.

The company’s outlook for all its businesses remains positive. According to management, growth trajectories across all segments are expected to remain solid over the next few years, driven by higher utilisation of existing capacity, a higher share of value-added products, and improved financial parameters.

Meanwhile, the company is expanding its Hindupur plant in Andhra Pradesh by 72ktpa at a capex of Rs 75 crore. It is also looking to integrate backwards to produce galvanised and cold rolled coil/pipe.

According to the brokerage, Surya Roshni’s focus on improving returns, cash generation and minimal capital expenditure makes it a strong re-rating candidate.