Steel stock skyrockets 18% after it announces ₹60 Cr capex to expand its Vadodara unit

Synopsis: National Fittings Ltd jumps 18% as it announces Rs. 60 cr investment to expand its Vadodara unit, adding 10,000 MT capacity in phases, reflecting strategic growth in ductile iron fittings and pumps manufacturing.

This company produces a full range of ductile iron grooved couplings & fittings, Threaded Fittings, stainless steel threaded fittings & ball valves, as well as a variety of innovative pumps, and is now gaining attention as it expands its new manufacturing unit in Gujarat.

With a market capitalisation of Rs. 166.36 cr, the shares of National Fittings Ltd are currently trading at Rs. 183.15 per share, increasing nearly 18% in today’s market session, making a high of Rs. 196, up from its previous close of Rs. 166.70 per share.

Capital Expenditure of new unit 

National Fittings Limited (NFL) is a leading manufacturer of iron cast fitting has announced significant developments to expand its manufacturing capabilities. In a board meeting held on 7th January 2026, the company approved a proposed capacity expansion at its upcoming new unit located in Village Mudhela, Taluka Dabhoi, District Vadodara, Gujarat. 

The expansion will initially involve the first phase of 3,000 metric tonnes (MT) per annum, expected to be operational by August 2026, with a total proposed capacity addition of 10,000 MT per annum, which is planned to be completed by December 2026 in a phased manner. 

The project involves an estimated investment of approximately Rs. 60 crores, to be financed through a combination of internal accruals and debt, aimed at catering to the increasing demand for iron cast fittings and assembly operations.

Lease of Land

For the new unit, the NFL has entered into a lease agreement with M/s Avisa Private Limited for a land parcel measuring 7.75 lakh square feet in Halol, Gujarat. The lease is structured for an initial term of nine years, with two automatic renewals, at a monthly lease rent of Rs. 1 lakh for the initial period, increasing to Rs. 3.75 lakh per month thereafter. 

The transaction has been classified as a related party transaction, as the entire shareholding of Avisa Private Limited is held by Mr. Anil Kumar Agarwal and Mr. Arpit Agarwal, who are also directors of NFL. These developments reflect the company’s strategic focus on capacity augmentation and geographic expansion to strengthen its presence in the industrial fittings sector.

About the company 

National Fittings Limited is an export-oriented company, a manufacturer of quality piping components and pumps to various industries. National Fittings manufactures a complete range of Ductile Iron Grooved Couplings & Fittings, Threaded Fittings, Stainless Steel Threaded Fittings & Ball Valves and a range of highly innovative Pumps.

The company is almost debt-free, with a ROCE of 10% and ROE of 9.12%, and trades at a reasonable P/E of 18.4 versus the industry’s 22.1. Its low PEG of 0.23 indicates strong growth potential. It has delivered a 36.7% profit CAGR over 5 years and maintains a healthy dividend payout of 19.4%, reflecting strong performance and shareholder returns.

Sales of the company increased from Rs. 20.58 cr in Q1FY26 to Rs. 23.64 cr in Q2FY26. Operating profit declined to Rs. 2.44 cr from Rs. 3.57 cr. Net profit also fell to Rs. 1.84 from Rs. 2.62 over the same period.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Steel stock skyrockets 18% after it announces ₹60 Cr capex to expand its Vadodara unit appeared first on Trade Brains.