Shares of this auto-ancillary stock under the small-cap category rose to 5 percent in Thursday’s trading session after ICICI Prudential Mutual Fund bought an additional stake in the company.
With a market capitalization of Rs 3,400.82 crores, the stocks of Divgi TorqTransfer Systems Limited, an automotive component entity opened their trading hour on Thursday at Rs 1,133.95, its intra-day high, and currently trades at Rs 1,112. The intra-day high price exhibits a gain of around 5 percent compared to the previous close of Rs 1,077.65 apiece.
According to the Bulk Deal data available as of October 18th, 2023 with the National Stock Exchange (NSE), ICICI Prudential Mutual Fund bought around 6.24 lakh equity shares of the company at an average trade price of Rs 1,080 per share. On the other side, Motilal Oswal Mutual Fund offloaded its entire stake by selling 10.34 lakh shares of the company at the same trade price.
During the past few financial years, the company has successfully been able to increase the numbers of the prime business indicators such as operating revenues and after-tax profits.
The most recent movement in the operating revenues reflects a jump from Rs 233.78 crores during FY21-22 to Rs 271.04 crores during FY22-23, and, the net profits, in congruence, increased from Rs 46.15 crores to Rs 51.16 crores.
Due to aggressive raw material expenditure, the company’s profitability ratios such as the return on equity (RoE) and the return on capital employed (RoCE) have gone down with the former reducing from 14.52 percent during FY21-22 to 11.48 percent during FY22-23, and, the latter, during the same period, moving down from 19.66 percent to 15.53 percent.
As per the latest shareholding data available for the quarter ended September 2023, the company’s Promoters hold a 60.49 percent stake, and the Foreign Institutional Investors, consistently increasing their stake, currently hold a 3.63 percent stake in the company.
Divgi TorqTransfer Systems Limited is involved in the business of developing as well as providing torque couplers, system-level transfer cases, and dual-clutch automatic transmission solutions.
Written by Amit Madnani
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