Steel stock jumps 7% after receiving orders for two iron ore blocks in Uttar Pradesh

The shares of a Small-Cap company, specializing in sponge iron, steel, and TMT bars production, jumped by upto 7 percent upon being declared the preferred bidder for two iron ore blocks in Uttar Pradesh

 

With a market capitalization of Rs. 11,581.49 crores on Thursday, the shares of Gallantt Ispat Limited jumped by upto 6.6 percent, making a high of Rs. 480.95 per share compared to its previous closing price of Rs. 450.80 per share.

 

Gallantt Ispat Limited, engaged in the business of Iron & Steel, Agro, Power, and Real Estate,  at its meeting held on June 19, 2025, the Board of Directors of Gallantt Ispat Limited approved two key decisions.

 

First, the company planned to invest Rs. 72.50 crores to acquire approximately 33 percent equity in Gallantt Lifespace Developers Private Limited (GLDPL), making GLDPL an associate company; this is a related party transaction as the CEO, Mr. Mayank Agrawal, is also a director and shareholder in GLDPL.

 

Second, Gallantt Ispat Limited has been declared the “Preferred Bidder” for two iron ore mining blocks in Uttar Pradesh, Block B (Bharhari) and Block C (Near Sobna-Chakriya), after participating in the e-auction conducted by the State Government. 

 

These blocks, with estimated reserves of 31.71 million metric tons and 18.88 million metric tons, respectively, will be allotted to support the company’s Gorakhpur Steel Unit. By securing these mining rights, Gallantt Ispat will be able to source its primary raw material, iron ore, internally, reducing reliance on external suppliers. This in-house mining capability is expected to provide significant cost savings, ensure a steady supply of raw material, and improve both operational flexibility and profitability for the company. Both decisions are expected to strengthen the company’s business and profitability, and all necessary disclosures have been made in compliance with SEBI regulations.

 

Financials & Others

 

The company’s revenue declined by 8 percent from Rs. 1,180.76 crore to Rs. 1,083.78 crore in Q4FY24-25. Meanwhile, Net profit rose from Rs. 95.39 crore to Rs. 116.31 crore during the same period.

 

The company’s PEG ratio of 0.35 indicates it may be undervalued, offering strong growth potential at a reasonable price. It also maintains a low debt-to-equity ratio of 0.13, showing financial stability and minimal reliance on borrowed funds.

 

The company has delivered impressive performance, with an average 3-year revenue growth of 61.31% and net profit growth of 58.32%, reflecting consistent and robust business expansion.

 

Gallantt Ispat Limited is an integrated steel manufacturing company based in India, specializing in the production and sale of iron and steel products such as TMT bars, sponge iron, M.S. round bars, billets, and iron ore pellets. The company also operates in related sectors like power generation and real estate, and provides wheat flour products under its brand.