A stock trading under Rs.100 surged to its 10 percent upper circuit after the company sold shares worth Rs.134.37 crores in PNB MetLife India Insurance. The transaction, involving 1,63,87,424 equity shares, attracted strong market interest, driving the stock’s sharp upward movement.
Price Variation
During Thursday’s trading session, shares of Elpro International Ltd hit its upper circuit limit of Rs.81.99 per share, rising 10 percent from their previous closing price of Rs.74.54 per share. However, the shares have retreated since then, trading at Rs.80.58 apiece. Over the past five years, the stock has delivered over 158 percent returns.
What Happened
Elpro International Limited has sold its entire remaining shareholding in PNB MetLife India Insurance Company Limited. The transaction involved the sale of 1,63,87,424 equity shares, each having a face value of Rs.10. The total value of the sale amounted to Rs.134.37 crores.
This move marks the complete exit of Elpro International Limited from its investment in PNB MetLife. The sale was executed at a significant valuation, reflecting the company’s strategic decision to liquidate its holdings in the insurance firm.
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Financial Overview
In its recent financial update, Elpro International Ltd reported consolidated revenue of Rs.16.35 crores for Q3 FY25, reflecting a 72 percent decrease compared to Rs.57.88 crores in Q3 FY24. Moreover, the company reported a net loss of Rs.21.07 crores in Q3 FY25, from a net profit of Rs.23.72 crores posted during the same period last year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 7.34 percent and a Return on Equity (ROE) of 6.26 percent. Its Price-to-Earnings (P/E) ratio stands at 15.27, lower than the industry average of 28.41. Furthermore, the company maintains a current ratio of 3.22, a debt-to-equity ratio of 0.33, and an Earnings Per Share (EPS) of Rs.4.88.
Business Overview
Elpro International Limited, founded in 1962, is a publicly traded company based in Mumbai, India. It operates in various industries, including electrical equipment manufacturing, real estate, investments, and renewable energy through windmills. The company was established in partnership with General Electric (GE), USA, and is known for its expertise in surge protection technology and zinc oxide disc production using GE’s globally recognized technology.
Written by – Siddesh S Raskar
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