In Tuesday’s trading session, the shares of one of the leading automotive component manufacturers hit a 20% upper circuit at Rs. 200, after the company signed a Memorandum of Understanding (MoU) with Blaer Motors Private Limited.
With a market cap of Rs. 442.3 crores, the shares of UCAL Limited opened in the green at Rs. 171, up by nearly 2.6 percent, as against its previous closing price of Rs. 166.7.
What’s the news:
According to the latest regulatory filings with the stock exchanges, UCAL Limited signed an MoU with one of the specialist companies in designing and developing hybrid drivetrain solutions, Blaer Motors Private Limited.
The Memorandum of Understanding (MoU) aims to combine their expertise and resources to design and develop electronic components for motor controllers ranging from 500 watts to 2 kilowatts.
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This partnership is set to expand UCAL’s market reach and leverage the strengths of both organizations.
Together, the companies will focus on and explore opportunities for collaborative product design and development, identifying emerging market trends and consumer needs to create innovative electronic products that align with future market demands.
“A merger of Blaer’s technical acumen in Control Systems and UCAL’s legacy in quality manufacturing and RD will not only meet but also satisfy the requirements of OEMs and needs of the consumers,” Co-Founder & Chief Business Officer of Blaer Motors commented.
Financials:
The company has reported a significant growth in the revenue from operations, with a 1.5 percent YoY rise from Rs. 184.3 crores in Q1 FY24 to Rs. 187.07 crores in Q1 FY25.
The net loss was reduced by nearly 48.3 percent YoY from a loss of Rs. 4.85 crores to a loss of Rs. 2.51 crores, during the same period.
Stock Performance:
The shares of UCAL Limited have delivered positive returns of nearly 41.8 percent in one year and around 16.6 percent in the last six months. So far in 2024, the stock has given about 34.4 percent of positive returns.
About the company:
Incorporated in 1985, UCAL Limited, formerly known as UCAL Fuel Systems Limited, has an established presence in the automobile space and addressing the demand for high-volume, quality-critical, cost-competitive automotive components.
Written by Shivani Singh
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