Established in 1995, Sarthak Metals Ltd (NSE: SMLT) stands as a pivotal player within the Desraj Bansal group, specializing in the production of Cored wires and Aluminum wire rods, which collectively contributed to 48% and 52% of its FY23 revenue, respectively. The company also manufactures Flux cored wires and Wire feeder machines, essential components in various steel-making processes applied in steel plants and foundries. Positioned strategically in proximity to a major steel hub, SMLT has earned a reputation for being the most diversified entity among its peers, characterized by robust revenue growth, a robust clientele network, and expanding profit margins.
India, the world’s second-largest producer of crude steel, achieved an output of 125.32 MT of crude steel and 121.29 MT of finished steel in FY23. Projections indicate a 4-7% growth in steel production to reach 123-127 MT in FY24, providing SMLT with ample room for further expansion. Noteworthy is the company’s foray into the Flux Cored Wire segment in FY23, a strategic move to produce an import substitute product. In FY21, India imported approximately 19,000 TPA from China to meet its demand in this sector. Furthermore, SMLT exhibited its commitment to growth by increasing its Aluminium Flipping Coils capacity by 50% in FY23. The cumulative effect of these ventures positions Sarthak Metals Ltd as a key player in the dynamic landscape of steel manufacturing in India.
Delve into the comprehensive research report conducted by Alphastreet to unravel the compelling reasons behind Sarthak Metals’ potential to yield significant returns. The report not only sheds light on the company’s intricate details but also provides insights into its strategic positioning for sustained growth.