Shares of this auto ancillary stock under the ‘small-cap’ category traded green on Thursday after the company successfully bagged orders totaling Rs 212.1 crores. Moreover, the company’s shares are inching towards its 52-week high price.
With a market capitalization of Rs 2,854.61 crores, the stocks of Divgi TorqTransfer Systems Limited started their trading session on Thursday at Rs 949.45 and currently trade at Rs 934.15, gaining approximately 0.30 percent compared to the previous close of Rs 932.10 apiece.
In a recent exchange filing, the company intimated about receiving order confirmations for ‘three’ components from two Tier I North American manufacturers of Gearboxes and Transmissions for a period of five years. These are precision-forged and machined components for the ‘Passenger’ and ‘Light Commercial Vehicles’ (LCVs).
The annual value of the order is worth Rs 42.5 crores making it a life-cycle revenue of Rs 212.1 crores. After successful trials, the mass production of these parts is expected to commence during FY24-25.
Earlier, the company received an order worth INR 46.9 crores from the same customer. With the award of the new orders mentioned above, the annual order book of the company with the abovementioned customers has crossed INR 89.4 crores.
During the recent financial quarters, the company reported positive movements as far as the operating revenues and after-tax profits are concerned. The former rose from Rs 56 crores during Q1FY23-24 to Rs 68 crores during Q2FY23-24, and the latter, keeping the timeframe the same, was reported at a constant level of Rs 10 crores.
Divgi TorqTransfer Systems Limited is engaged in the business of developing and providing auto components and other ancillary parts such as system-level transfer cases, torque couplers, and dual-clutch automatic transmission solutions. The Company operates only in one business segment i.e., auto components and others.
Written by Amit Madnani
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