The shares of the leading vehicle braking systems manufacturer fell 8% to an intraday low of ₹15,799.95 after equity worth over ₹2,260 crore changed hands via a block deal on Wednesday’s early trade.
ZF Commercial Vehicle Control Systems (WABCO India) belongs to the Mid-cap category of stocks, with a market capitalization of ₹30,957 crores. At 10.40 a.m., the company shares were trading at ₹ per share, down percent from the previous close price.
In early Wednesday trading, equity worth over ₹2,260 crore changed hands in large deals, with 14.3 lakh shares of ZF Commercial Vehicles being traded in multiple block transactions.
Earlier, CNBC-TV18 reported that Wabco Asia Private Ltd was considering selling a 5% stake in ZF Commercial Vehicle Control Systems India Ltd, a German automotive systems manufacturer, valued at ₹1,423.1 crore.
The shares were offered at a floor price of ₹14,980 each, representing a 13.3% discount to the company’s Tuesday closing price on the NSE.
ZF Commercial Vehicle Control Systems (WABCO India) market leader in vehicle braking systems, which is is engaged in the manufacture of air brake actuation systems for commercial vehicles.
WABCO India accounts for 85% of medium and heavy truck braking solutions in India and the company also supplies compressors for EV buses.
The company is one of the leading providers of electronic braking, stability, suspension, and transmission control systems to the global commercial vehicle industry. The company caters to international markets such as South Asia, North America, and the Middle East.
According to the latest shareholding pattern, the company’s promoters hold 75% of the stock, domestic institutional investors (DIIs) own 15.77%, and foreign institutional investors (FIIs) possess a 2.24% stake in the company.
ZF Commercial’s revenue grew by 10% year-on-year, reaching ₹3,784 crore in FY23-24, up from ₹3,445 crore in FY22-23. During the same period, net profit surged by 27%, rising from ₹318 crore to ₹405 crore.
Additionally, the company’s shares have soared by 4% in the past six months and by 35% over the last 12 months.
Recently, the ZF Group announced an investment of ₹1,800 crore over a 10-year period to establish its latest plant. The company currently operates five manufacturing facilities two in Chennai, two in Jamshedpur, and one in Pantnagar.
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
