The shares of the auto component manufacturer fell up to 4 percent after ace investor Ashish Rameshchandra Kacholia offloaded a 2.46 percent stake in the company.
With a market capitalization of Rs 117.26 crore, the shares of Universal Autofoundry Ltd were trading at Rs 94.30 per share, increasing around 3.28 percent as compared to the previous closing price of Rs 97.50 apiece.
Reason for Rise
The shares of the company have seen bearish movement after Himalaya Finance & Investment Co sold 3.06 lakh equity share which is a 2.4 percent stake in the company at an average price of Rs 98 per share, and ace investor Ashish Rameshchandra Kacholia offloaded 3.04 lakh equity share a 2.46% stake at an average price of Rs 98.01 per share.
However, promoters Vikram Jain and Vinit Jain bought 6 lakh equity shares which represent a 4.8% stake in their company at an average price of Rs 98 per share. Additionally, as of September 2024, Vikram Jain and Vinit Jain hold 22.78 lakh equity shares in the company.
Financial Outlook
Looking into Universal Autofoundry’s performance, revenue increased by 5 percent from Rs 52.28 crore in Q2FY24 to Rs 49.83 crore in Q4FY25. During the same period, net profit increased by 17 percent, from Rs 1.13 crore to Rs 0.94 crore.
Prominent Investor
Ace investor Ashish Rameshchandra Kacholia holds 10,34,353 equity shares which is equivalent to 8.32 percent in the company as of September 2024.
Manufacturing Facilities
The company operates three integrated manufacturing facilities spanning 20,000 sq. meters, producing intricate, cored, and fully machined cast components weighing 5 to 150 kg. With a casting capacity of 48,000 metric tons annually, the facilities support advanced and large-scale production capabilities.
Ratio analysis
The company’s profitability measures show a decline in return on equity (RoE) from 18.07 percent in FY 22-23 to 6.70 percent in FY 23-24, while, during the same period return on capital employed (RoCE) decreased from 24.77 percent to 10.12 percent. In contrast, the net profit margin (NPM) was 2.41 percent in fiscal year 23-24.
Company snapshot:-
Universal Autofoundry Limited is an India-based global manufacturer and exporter specializing in the production of cast iron and ductile iron castings. The Company’s products cater to various industries, including automobiles, earth movers, agriculture, railways, and international markets.
Written by:- Abhishek Singh
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