Vardhman Special Steels: Stock gains upon Q4FY20 sales volume growth
As the government started easing out the lockdown norms, shares of Vardhman Special Steels Limited (VSSL) continued to go steady. The stock price got additional support after the company declared a 3.9 per cent YoY growth in its sales volume for Q4FY20.
Since June 01, 2020, the shares have given staller returns of 35 per cent. Compared to 5 per cent returns in BSE small-cap index for the same period, these returns are significantly higher. During FY20, VSSL marked one very important event of completion of foreign investment by Aichi Steel Corporation (ASC), Japan. As reported in the FY19 annual report of VSSL, the company registered an agreement with ASC by successful share subscription and investment of 11.4 per cent equity stake. The investment is strategically very important for the company as it will assist in technical know-how and technological advancements.
With upgradation purposes in mind, Vardhman Special Steels underwent 78 shutdowns during the previous fiscal year. Such upgrade was executed in order to modernize steel melting shop facilities whose annual capacity at present stands at 2,00,000 TPA. Now with the resumption of economic activity and the company's production, upcoming positive trends in volume growth are anticipated.
On Tuesday, at 3.00 pm, shares were trading at Rs 62, with gains of 0.24 per cent on BSE.