Shares of one of the leading manufacturers of forged and machined components in India surged by 6 percent on BSE to Rs. 2,579.9 on Wednesday. This increase followed a significant purchase by SBI Mutual Funds and others, which collectively purchased Rs. 196.15 crores worth of the company’s shares.
With a market capitalisation of Rs. 6,876.7 crores, at 10:56 a.m., the shares of Rolex Rings Limited were trading in the green at Rs. 2,537.5, up by 4.2 percent, compared to its previous closing price of Rs. 2,434.35.
What’s the News:
According to the 27th August bulk deal data available with the BSE, Franklin Templeton Mutual Fund (MF), SBI MF, and Kotak Mahindra MF bought nearly 15.6 lakh, 28 lakh and 17 lakh shares in Rolex Rings, at an average price of Rs. 2,421.08, Rs. 2,421.66, and Rs. 2,425 per share, respectively, leading to a combined transaction value of Rs. 146.82 crores.
Further, India Acorn ICAV also purchased around 20.3 lakh equity shares in the company for Rs. 49.33 crores, at an average price of Rs. 2,421.63 per share.
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On the selling side, ICICI Prudential MF offloaded 31.9 lakh equity shares, valued at Rs. 77.35 crores, with an average sale price of Rs. 2,425 per share..
Additionally, promoter group members Sanjay Kumar Bhagvanji Bole and Ashok Kumar Dayashankar Madeka sold a combined total of around 4.46 lakh shares in Rolex Rings, at an average price of Rs. 2,419 each, amounting to a total of Rs. 108.1 crores.
Financials:
The company experienced a marginal decline in its revenue from operations, showing a year-on-year decrease of around 0.2 percent from Rs. 311.3 crores in Q1 FY24 to Rs. 310.8 crores in Q1 FY25.
However, its net profit grew during the same period from Rs. 48.4 crores to Rs. 50 crores, indicating a rise of nearly 3.3 percent YoY.
A spike in ocean freight rates combined with weaker demand from Europe has offset the performance observed in domestic markets.
This impact was felt the strongest in revenues from the export of bearing rings, which declined by more than 35 percent compared to Q1 FY24. It is anticipated that, following this initial shock, the business will stabilise over the coming quarter.
Meanwhile, Rolex Rings is focused on lowering its power and fuel costs by expanding its ground-mounted solar plant with an additional 12MW capacity, expected to be operational within the next 12 months.
Stock Performance:
The shares of Rolex Rings delivered positive returns of nearly 19 percent in one year as well as around 21.2 percent returns in the last six months.
About the company:
Incorporated in 2003, Rolex Rings Limited is primarily engaged in the business of manufacturing and selling of forged & machined bearing rings and automotive components.
Written by Shivani Singh
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