Shares of this micro-cap stock associated with the ‘Auto Components’ industry jumped approximately 18 percent in Friday’s trading session after the company announced financial results for Q4FY24, i.e., for the quarter ended March 2024. In the past month, the company’s stock jumped nearly 34 percent for its holders.
With a market capitalization of Rs 779 crores, the stocks of Rane Brake Lining Limited started their trading session on Friday at Rs 854.40 and currently trade at Rs 1,005.35, gaining a whopping 18 percent compared to the previous closing levels of Rs 851.20 apiece.
Such a sudden spike in the company’s share price was witnessed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced its financial results for the quarter ended March 2024.
On a sequential basis, the company reported an increase in its prime business indicators, viz, revenue from operations as well as after-tax profits.
The former rose from Rs 164.25 crores during Q3FY24 to Rs 186.22 crores during Q4FY24, and the latter, keeping the timeframe the same, took a shift from Rs 10.12 crores to Rs 15.39 crores exhibiting an increase of around 52 percent.
In addition to the above, the company, on a yearly basis too, reported an increase in the abovementioned metrics with the operating revenues shifting up from Rs 164.87 crores during Q4FY23 to Rs 186.22 crores during Q4FY24, and the bottom-line numbers, during the same horizon, moving up from Rs 12.02 crores to Rs 15.39 crores.
Historically, the company has been able to maintain healthy profitability ratios in FY23. The return on equity (RoE) was reported at 12.81 percent and the return on capital employed (RoCE) was reported at 16.74 percent.
As per the latest shareholding data for the March’24 quarter, the company’s Promoters hold a 70.93 percent stake, and the Public (retail) Investors hold a 25.43 percent stake in the company.
Rane Brake Linings Limited is an India-based company engaged in manufacturing and marketing auto components within and outside the country. The company’s product portfolio includes brake linings, clutch facings, disc pads, brake shoes, and railway brake blocks for utility vehicles, passenger cars, commercial vehicles, two-wheelers, and others.
Written by Amit Madnani
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