Shares of this auto ancillary stock under the ‘small-cap’ category jumped approximately 6 percent in Tuesday’s trading session after the company’s Board of Directors are set to meet to consider the buyback of fully paid-up equity shares of the company.
With a market capitalization of Rs 4,512.96 crores, the stocks of Sharda Motor Industries Limited opened their trading hour on Tuesday at Rs 1,526.45 and currently trades at Rs 1,517.90, gaining around 6 percent compared to the previous closing levels of Rs 1,432.10 apiece.
Such bullish share price movements are witnessed today after the company’s Board of Directors (BOD) have scheduled a meeting on Thursday, 18th April 2024, to consider the proposal for the buyback of fully paid-up equity shares of the company and any other matters as may be necessary and incidental thereto, in accordance with the applicable provisions under the Companies Act, 2013, the SEBI Regulations, 2018, and other applicable laws.
During the recent financial quarters, the company’s prime indicators of business, viz, its operating revenues as well as bottom-line numbers, showed a dip with the former reducing from Rs 763 crores during Q2FY24 to Rs 689 crores during Q3FY24, and the latter, keeping the timeframe the same, shifted down from Rs 79 crores to Rs 75 crores.
In addition to the above, the company’s ratio analysis portrays the return ratios, viz, the return on equity (RoE) as well as the return on capital employed (RoCE), reported decent numbers during FY22-23 with the former at 27.48 percent and the latter at 35.08 percent
Keeping a purview of the last one year, the company’s stock has successfully delivered multibagger returns of around 145 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.45 lakhs.
Incorporated in 1986, Sharda Motor Industries Limited is engaged in the business of manufacturing as well as assembly of auto & white goods components. Its product portfolio includes catalytic converters, exhaust & suspension systems, sheet metal components, and plastic parts for the two industries mentioned earlier.
Written by Amit Madnani
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