The shares of this smallcap company locked 20 percent upper circuit in Wednesday’s trading session after reporting an increase in net profit by 77 percent YoY. On a YTD basis, the stock has delivered a multibagger return of 102 percent to its shareholders.
Price Movement:
With a market capitalization of Rs. 1,742 crores, the shares of Automobile Corporation Of Goa Ltd started Wednesday’s trading session on a higher note at Rs. 2,820 compared to its previous close of Rs. 2,384.20.
Within a few minutes of the opening bell, the shares clocked a 20 percent upper circuit at Rs. 2,861 apiece and are also recorded as the company’s fresh 52-week high.
What Happened:
Such a bullish movement in the share price was observed after the company declared Q1FY25 results. Quarterly, the revenue jumped by 17 percent from Rs. 168.44 crores during the March quarter to Rs. 196.78 crores in the June quarter. In addition, the net profits surged by 65 percent from Rs. 10.91 crores to Rs. 17.92 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue zoomed by 37 percent from Rs. 143.92 crores during Q1FY24 to Rs. 196.78 crores in Q1FY25. On the other hand, the net profits magnified by 77 percent from Rs. 10.1 crores to Rs. 17.92 crores during the same timeframe.
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Other Details:
As per the annual report, In FY23-24, ACGL manufactured a total of 6,511 buses, including 3,904 school buses and 122 buses for a major State Transport Undertaking.
Furthermore, with the rising adoption of electric buses in State Transport Undertakings the Tata Group company is consequently enhancing its manufacturing facility and engineering expertise to accommodate the production of forthcoming bus models, particularly electric buses.
Additionally, the company is endeavouring to enter the electric bus body manufacturing sector, anticipating that this technology will represent the future of passenger mobility.
Moreover, the company is focusing on the innovation and technology development to enhance the value of the products and manufacturing procedures in order to cater to varied market demands.
Important Financial Ratios:
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 14.37 percent during FY 22-23 to 17.52 percent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 16.77 percent to 22.04 percent during the same timeframe.
Furthermore, the net profit margin increased from 5.50 percent during FY22-23 to 6.56 percent during FY23-24.
Shareholding Pattern:
Looking at the latest shareholding pattern, the Promoters, namely Tata Motors and Tata Motors Finance, collectively possess 49.77 percent of the stake. Foreign Institutional Investors (FIIs) hold a mere 0.01 percent of the shares, while the Public holds the majority stake at 50.21 percent.
Company Profile:
Incorporated in 1980, Automobile Corporation Of Goa Ltd specializes in manufacturing sheet metal components, assemblies, and bus bodies for various applications. It was the first major engineering unit to be set up in Goa and was jointly promoted by Tata Motors Ltd and EDC Ltd.
Written By Vaibhav Patil
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