The share price of this small-cap Auto Ancillaries stock went up by 4.3 percent to an Intraday high of Rs 2,174.45 per share on Thursday after FII bought a stake in the company.
With a market capitalization of Rs 6,433.92 crores, the shares of Sharda Motor Industries Ltd went up by 4 percent, trading at Rs 2,160.35 a piece on Thursday’s afternoon session. Also, today’s high price of the stock is Rs 2,174.45 a piece and the previous closing price of the stock is Rs 2083.25 a piece.
What happened:According to NSE’s bulk deal website, the company announced that its promoter Mala Relan has sold 25,00,000 units of equity shares at Rs 1,996.10 a piece. Also, the domestic institutional investor ICICI Mutual Fund and the foreign institutional investor HSBC Mutual Fund have bought 3,11,205 and 1,85,356 units of equity shares of Shardha Motors respectively for the same price.
Financials :Reviewing the financials of Sharda Motor Industries on a year-on-year basis, the revenues rose by 4 percent from Rs 2,700 crores in FY23 to Rs 2,809 crores in FY24. In the same time frame, the net profits also increased from Rs 205 crores to Rs 295 crores demonstrating a 43.9 percent increase.
As of May 2024, Shardha Motors holds a 30 percent market share for passenger vehicles in India along with a joint venture with Purem. Their key customers include prominent brands such as Mahindra, Ashok Leyland, Hyundai, Cummins Power Generation etc.
Shardha Motors increased its EBITDA margin by 13 percent and PAT margin by 10 percent in FY24. They also achieved a 39 percent Return on Capital Employed (ROCE) for the same year.
In FY24, Shardha Motors’ revenue split showed 53% from passenger vehicles (PV), 42% from commercial vehicles (CV), and 5% from other sources.
Share price movements: The shares of this company generated a multi-bagger return of 176 percent over the past year and 70 percent over the past 6 months.
Share holding pattern: As of 2024, the firm’s shareholding pattern stood at 73.20 percent for promoters 24.83 percent for the public, 1.55 percent for foreign institutional investors, and 0.42 percent for the domestic institutional investors.
About the company: Incorporated in the year 1986, Sharda Motor Industries Ltd is primarily engaged in the manufacturing and assembly of Auto Components and White Goods Components. Their product portfolio includes manufacturing Exhaust systems, catalytic Converter, Independent Suspension, Seat Frames, Seat Covers (Two Wheelers & Four Wheelers), and Soft Top Canopies.
Written By Zahal
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