Shares of this auto ancillary stock under the ‘small-cap’ category zoomed approximately 10 percent in Friday’s trading session after the company announced financial results for the quarter ended December 2023. In the past six months, the company’s stock has gained nearly 35 percent for its stakeholders.
With a market capitalization of Rs 2,888.55 crores, the stocks of Sandhar Technologies Limited started their trading session on Friday at Rs 456.40 and currently trade at Rs 479.90, gaining around 10 percent compared to the previous closing levels of Rs 438.85 apiece.
Such bullish share price movements are observed today after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced financial results for Q3FY23-24, i.e., for the December 2023 quarter.
Sequentially, the prime indicators of business, viz, operating revenues as well as after-tax profits, showed opposing movements with the former, on one end, increasing marginally from Rs 885 crores during Q2FY24 to Rs 890 crores during Q3FY24, and the latter, keeping the timeframe the same, reducing from Rs 28 crores to Rs 25 crores.
On a YoY basis, the metrics mentioned above have shown positive movements with the operating revenues increasing from Rs 723 crores during Q3FY23 to Rs 890 crores during Q3FY24, and the after-tax profits, during the same period, taking a shift from Rs 20 crores to Rs 25 crores exhibiting a gain of around 25 percent.
Historically, the company, during FY22-23, reported an increase in its return ratios with the return on equity (RoE) reported at 7.92 percent and the return on capital employed (RoCE) reported at 10.20 percent.
In the past one year period, the company’s stock has turned multibagger providing returns of approximately 105 percent to its shareholders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.05 lakhs.
As per the investor presentations during the recent period, the company’s share of business segments rose during the period including all of them, viz, two-wheelers, passenger vehicles, commercial vehicles, and others.
According to the latest shareholding pattern for the December 2023 quarter, the company’s Promoters hold a 70.38 percent stake, and the Public (retail) investors, recently increasing their stake, currently hold a 11.69 percent stake in the company.
Founded in 1987, Sandhar Technologies Limited is an auto part supplier catering to automotive original equipment manufacturers (OEMs) focusing on the security and safety systems of vehicles. The company’s product portfolio includes locking systems, door handles, die castings, relays, and automotive Optoelectronics.
Written by Amit Madnani
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