After a near-5x rally from IPO, brokerage sees 38% more upside in this small-cap metal stock
The stock, which was listed on the NSE SME Emerge platform in June 2025, has delivered a stellar post-listing performance. It settled at Rs 693.50 on Tuesday, nearly 4.85 times its initial public offering (IPO) price of Rs 143.
- Jun 9, 2026,
- Updated Jun 9, 2026 5:12 PM IST
Choice Institutional Equities has initiated coverage on small-cap metals and mining player Monolithisch India Ltd with a 'BUY' rating, citing strong demand prospects, capacity expansion and earnings growth visibility.
Monolithisch India, which was listed on the NSE SME Emerge platform in June 2025, has delivered a stellar post-listing performance. The stock settled at Rs 693.50 on Tuesday, nearly 4.85 times its initial public offering (IPO) price of Rs 143.
Explaining its positive view on the company, the brokerage said: "India's crude steel production is expected to increase from 168.4 MnT in FY26 to 255 MnT by FY31, with the induction furnace (IF) route remaining a key contributor to growth. As induction furnace steel production expands from 45.8 MnT to 69.4 MnT during the same period, demand for ramming mass — a critical refractory consumable used in induction furnaces — is expected to grow in tandem."
Choice added: "With a strong presence in Eastern India, which houses most of the country's IF steel capacity, Monolithisch is well positioned to benefit from this structural demand growth. Unlike steel producers, whose earnings are influenced by commodity price movements, Monolithisch's growth is primarily driven by steel production volumes, providing a relatively visible and recurring demand outlook."
The brokerage highlighted the company's ongoing capacity expansion plans as a key growth driver.
"Monolithisch is entering a new growth phase with installed capacity increasing from ~2,10,000 MTPA to ~5,75,000 MTPA by early FY27. The expanded capacity provides a platform for higher production and sales volumes, which are expected to grow from 1,71,200 MT in FY26 to 4,87,300 MT by FY29E," it said.
Further, Choice noted: "Alongside volume growth, realisations are projected to improve, driven by a better product mix and favourable demand conditions. The combination of higher volumes and improving realisations is expected to drive revenue growth from Rs 135.3 crore in FY26 to Rs 453.2 crore by FY29E. As utilisation levels increase to ~85 per cent by FY29E, operating leverage is expected to support further margin expansion, resulting in earnings growth outpacing revenue growth over the forecast period."
The brokerage has assigned a target price of Rs 960 on the stock, suggesting a potential upside of 38.42 per cent from Tuesday's closing level.
Choice said: "Potential migration to the NSE Main Board, geographical expansion beyond Eastern India and opportunities for backward integration provide additional optionality beyond our forecasts. These initiatives could support higher earnings growth and valuation re-rating over time."
However, the brokerage also flagged several risks, including capacity expansion execution delays, high customer concentration, elevated working capital requirements, competitive intensity, slower-than-expected market share gains, SME market liquidity concerns and potential valuation de-rating.
Monolithisch is engaged in the manufacturing of premixed high-quality ramming mass, a key refractory consumable used in induction furnaces. These furnaces are widely deployed by secondary steel manufacturers for steel production.
Choice Institutional Equities has initiated coverage on small-cap metals and mining player Monolithisch India Ltd with a 'BUY' rating, citing strong demand prospects, capacity expansion and earnings growth visibility.
Monolithisch India, which was listed on the NSE SME Emerge platform in June 2025, has delivered a stellar post-listing performance. The stock settled at Rs 693.50 on Tuesday, nearly 4.85 times its initial public offering (IPO) price of Rs 143.
Explaining its positive view on the company, the brokerage said: "India's crude steel production is expected to increase from 168.4 MnT in FY26 to 255 MnT by FY31, with the induction furnace (IF) route remaining a key contributor to growth. As induction furnace steel production expands from 45.8 MnT to 69.4 MnT during the same period, demand for ramming mass — a critical refractory consumable used in induction furnaces — is expected to grow in tandem."
Choice added: "With a strong presence in Eastern India, which houses most of the country's IF steel capacity, Monolithisch is well positioned to benefit from this structural demand growth. Unlike steel producers, whose earnings are influenced by commodity price movements, Monolithisch's growth is primarily driven by steel production volumes, providing a relatively visible and recurring demand outlook."
The brokerage highlighted the company's ongoing capacity expansion plans as a key growth driver.
"Monolithisch is entering a new growth phase with installed capacity increasing from ~2,10,000 MTPA to ~5,75,000 MTPA by early FY27. The expanded capacity provides a platform for higher production and sales volumes, which are expected to grow from 1,71,200 MT in FY26 to 4,87,300 MT by FY29E," it said.
Further, Choice noted: "Alongside volume growth, realisations are projected to improve, driven by a better product mix and favourable demand conditions. The combination of higher volumes and improving realisations is expected to drive revenue growth from Rs 135.3 crore in FY26 to Rs 453.2 crore by FY29E. As utilisation levels increase to ~85 per cent by FY29E, operating leverage is expected to support further margin expansion, resulting in earnings growth outpacing revenue growth over the forecast period."
The brokerage has assigned a target price of Rs 960 on the stock, suggesting a potential upside of 38.42 per cent from Tuesday's closing level.
Choice said: "Potential migration to the NSE Main Board, geographical expansion beyond Eastern India and opportunities for backward integration provide additional optionality beyond our forecasts. These initiatives could support higher earnings growth and valuation re-rating over time."
However, the brokerage also flagged several risks, including capacity expansion execution delays, high customer concentration, elevated working capital requirements, competitive intensity, slower-than-expected market share gains, SME market liquidity concerns and potential valuation de-rating.
Monolithisch is engaged in the manufacturing of premixed high-quality ramming mass, a key refractory consumable used in induction furnaces. These furnaces are widely deployed by secondary steel manufacturers for steel production.