Smallcap stock after signing agreement to acquire Molycop for $1.45 Billion

Synopsis:
The shares of this industry products manufacturer and distributor company were in focus today following the acquisition of Molycop through a Definitive Agreement. Let us see how the company would benefit from this. 

This company, which is a leading manufacturer and distributor of specialised, critical, and recurring consumable products for the global mineral beneficiation, mining, and bulk solids handling industry, had its shares in focus after the acquisition of Molycop, a leading global supplier of grinding media for the mining industry, through a Definitive Agreement.

With the market cap of Rs 12,907 crore, the shares of Tega Industries Ltd jumped 2 percent and reached a high at Rs 1,980 , compared to its previous day closing price of Rs 1,934.90. The shares are trading at a PE of 54.6, whereas its industry PE is 34.8, and have given a return of 214% since its listing in December 2021.

About the acquisition and more

Tega’s agreement to acquire Molycop for USD 1.45 billion is a decisive move that pushes the company straight into the global spotlight. Molycop is a century-old, highly trusted name in grinding media, and acquiring it gives Tega immediate access to major mining markets where Molycop already has strong relationships. 

The timing is ideal, when global mineral demand is rising due to infrastructure growth, clean-energy metals, and the EV boom. Instead of spending years building this global presence, Tega is stepping into it instantly through a business that already has scale, credibility, and a powerful distribution network.

Once the deal closes, Tega transforms from a strong Indian multinational into a true global mining consumables leader. With 26 manufacturing plants across continents, the combined business can offer miners a full suite of essential products that ranges from grinding media to wear parts, making Tega a one-stop solutions partner. This not only deepens customer trust but also opens major cross-selling opportunities, allowing Tega to introduce its products into new regions where Molycop is already dominant.

The company’s Rs 1,713 crore fundraise, backed strongly by investors, shows clear belief in this transformation. Beyond adding scale, the acquisition brings Tega a more diversified global footprint, stronger brand visibility, and access to long-term, recurring mining consumables demand. Ultimately, this move helps Tega evolve into an innovation-driven global MNC with a richer product mix, wider market reach, and a far stronger competitive position for the future.

Financials and others 

The revenue from operations is at Rs 405 crore in Q2 FY26 versus Rs 353 crore in Q2 FY25, which is an increase of about 15 per cent YoY. Similarly, the net profit has risen by about 543% when we compare the Q2 FY25 profit of Rs 7 crore with the Q2 FY26 profit of Rs 45 crore. 

The company has a healthy Rs 1,155.6 crore order book, giving it strong visibility on future work. Even more encouraging is that Rs 730.6 crore of this is set for execution over the next 12 months, creating a clear pipeline the team can begin delivering on immediately. Management is confident that demand “remains strong” across both business segments adds further comfort. Overall, the order book gives the company a solid runway for the coming quarters and supports its growth expectations for FY26.

Tega Industries has grown into a trusted global name in the mining and mineral processing world, designing and manufacturing the essential consumables that keep these industries running smoothly. From its roots in Kolkata back in 1976, it has steadily expanded its reach and today serves customers in 92-plus countries with a portfolio of 93-plus specialised products. 

What truly sets it apart is the network it has built of the manufacturing hubs across India, Australia, Chile, and South Africa, and a loyal base of 700-plus customers who rely on its quality and expertise. With strong R&D, rigorous quality checks, and a commitment to long-term partnerships, the company has earned its place as a preferred partner for some of the world’s leading mining businesses.

Written by Leon Mendonca

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 Smallcap stock after signing agreement to acquire Molycop for $1.45 Billion appeared first on Trade Brains.