Cronimet Alloys India Ltd (previously GMR Ferro Alloys) is a ferro alloys company, engaged in the manufacture of high carbon ferro-chrome for use in the stainless steel industry. It was created by GMR Industries Ltd by spinning off its metallurgical division in April 2006. It has a high carbon ferro-chrome manufacturing facility in Srikakulam district of Andhra Pradesh., and has an installed capacity of producing 25,000 MT ferro chrome in two grades, high silicon and low silicon.
Cronimet Mercon Invest Ltd (a Dubai based MNC) has completed the acquisition of GMR Ferro Alloys and Industries Ltd, part of the GMR Group which is into diversified infrastructure sectors. Post this development, the company has been renamed as Cronimet Alloys India Ltd. Consequent to the acquisition, Cronimet has shifted the headquarters of GMR Ferro Alloys from Hyderabad to Tekkali in Srikakulam district. This is a tightly held company. Cronimet MNC's holding in the company has increased to 70.48%. There is very little free floating stock of this company in the market which is fast drying up. The company posted an EPS of 3.82 in the June quarter, which means that on an annualized basis, the stock is trading at a very cheap PE ratio of just over 5. With the kind of growth the company is poised to make in the next few years, this stock can be a potential GOLDMINE.
Technically, the Cronimet Alloys India Ltd stock is making new highs and as there is hardly any floating stock left in the market, those who enter the stock quickly can possibly make huge gains.