Oriental Trimex's Capex Expansion Fuels Investor Interest in Small-Cap Stock Below ₹20

Team Finance Saathi

    24/Aug/2024

Key Points:

Oriental Trimex Limited, a small-cap stock below ₹20, surged 20% on Friday, closing at ₹14.50 on the NSE.

The company announced a Capex expansion, planning to import a cutting-edge wire-based gangsaw machine for slab cutting from China.

This strategic investment aims to enhance Oriental Trimex's position as a leader in the natural stone processing industry.

The stock will be in focus on Monday as investors assess whether the Capex expansion has been fully priced in or if further growth is anticipated.

Oriental Trimex's market cap stands at ₹42 crore, with its 52-week high and low at ₹14.50 and ₹6.15, respectively.

Oriental Trimex Limited, a small-cap stock trading below ₹20, has captured the attention of investors after a significant Capex expansion announcement. The stock closed 20% higher at ₹14.50 on Friday, reflecting strong buying interest ahead of the weekend. As the Indian stock market resumes operations on Monday, Dalal Street enthusiasts will closely watch this stock to determine if the expansion has been fully priced in or if there's more potential upside.

Capex Expansion Details: On Thursday, Oriental Trimex informed the stock exchanges about its plans to foray into the business of cable machines for slab cutting. The company, known as a leading processor and trader of natural stones for over two decades, announced the importation and installation of a cutting-edge wire-based gangsaw machine from China. This advanced technology, often referred to as a "Cable Machine for Slab Cutting," is set to revolutionize the stone processing industry in India.

The press release highlighted the company's commitment to innovative technologies, aiming to enhance operational efficiency and deliver top-quality products to clients in the high-end residential and commercial construction segments. The machine, which will be installed at Oriental Trimex's plant in Gummidipoondi near Chennai, employs diamond-coated cables for precise cuts, offering a significant improvement over traditional gang saws that utilize multiple blades.

As the first Indian company to import this advanced machine for processing imported marble, Oriental Trimex Limited is poised to set new industry standards and reinforce its pioneering role in the natural stone sector.

Stock Performance and Outlook: Investors flocked to the stock on Friday, pushing it to a 52-week high of ₹14.50 on the NSE, with a trade volume of around 6.60 lakh shares and a market cap of ₹42 crore. The company's 52-week low stands at ₹6.15 per share.

With the stock already reflecting a substantial increase, market participants are eager to see how it performs on Monday. The question remains whether the recent Capex announcement has been fully discounted in the current price or if there is still upside potential for investors.

As Oriental Trimex continues to expand its technological capabilities and solidify its leadership in the natural stone industry, the company's stock remains one to watch for those looking to capitalize on growth opportunities in the small-cap segment.

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