Shares of this auto ancillary stock under the ‘small-cap’ category hit the 5 percent upper circuit in Thursday’s trading session after well-known ace investor Mr. Sunil Singhania bought a stake in the company via Bulk Deal.
With a market capitalization of Rs 5,359.32 crores, the stocks of Shriram Pistons & Rings Limited started their trading session on Thursday hitting the 5 percent upper circuit at Rs 1,216.65, and are currently locked in at the same level.
Such sharp stock price movements were observed after Mr. Sunil Singhania, one of the well-known ace investors based in India, bought a stake in the company via a Bulk Deal.
According to the data available with the National Stock Exchange(NSE), the Abakkus Fund, owned by the ace investor, bought approximately 30 lakh equity shares in total an average trading price of Rs 1,103.60. Apart from the above, an international party, viz, Al Mehwar Commercial Investments LLC bought 4.36 lakh shares at the same trade price.
On the other hand, K S Kolbenschmidt GMBH, one of the existing Non-Institutional players invested in the company, sold 39 lakh shares at an average trading price of Rs 1,103.60. As per the quarter ended September 2023, the seller party held approximately 88.50 lakh equity shares equating to a 20.09 percent stake in the company..
During the recent financial quarters, the company has been successful in increasing its prime business indicators such as operating revenues and net profits. The former rose from Rs 716.42 crores during Q1FY23-24 to Rs 751.61 crores during Q2FY23-24, and, the latter, during the same period, shifted from Rs 101.45 crores to Rs 113 crores.
Moreover, the profitability metrics showed positive movements with the return on equity (RoE) increasing from 13.13 percent during FY21-22 to 19.33 percent during FY22-23, and, the return on capital employed (RoCE), during the same time horizon, took a shift from 16.86 percent to 23.21 percent.
Shriram Pistons & Rings Limited is involved in the business of manufacturing as well as marketing its automotive components. The company’s product portfolio comprises piston pins, piston rings, and engine valves that are been used in passenger commercial vehicles, tractors, stationary engines, etc.
Written by Amit Madnani
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