The shares of Leading automotive OEM manufacturers gained 5% to Rs 389.55 apiece after Minda Corporation exited its entire stake in the company.
The company belongs to the Small-cap category with a market capitalization of Rs 4,624 crores. At 3:15 p.m, the company shares were trading at ₹ 378.35 apiece, up 1.86 percent from the previous close price.
As per the block deal data available with the NSE, Investor Minda Corporation exited Pricol by selling its entire personal shareholding of 15.7 percent via open market transactions. Minda sold 1,83,76,431 equity shares at an average price of ₹ 343.5 per share and 7,46,027 shares at an average price of ₹ 345.98 per share for worth Rs 631 crores.
However, Goldman Sachs India, Aditya Birla Sun Life Insurance Company, ICICI Prudential Mutual Fund, Tata Mutual Fund, TNTBC as the trustee of Nomura India Stock Mother Fund, Fidelity Funds India Focus Fund, and Employees Provident Fund bought 1,68,83,171 equity shares in the company, which is equivalent to 13.85 percent of equity capital, at an average price of Rs 343.5 per share, valued at ₹ 580 crore
Pricol caters to major leading automotive OEMs in two & three-wheelers, cars & vans, passenger vehicles, commercial vehicles, farm equipment, and off-road vehicles across India and also exports to 45+ countries globally.
The revenue of Pricol Ltd has increased year on year by 12 percent from Rs 516 crore in Q2FY23 to Rs 578 crore in Q2FY24. During the same period, net profit declined by 31 percent, from Rs 48 crore to Rs 33 crore.
Pricol derives over 80% of its revenue from Original Equipment Manufacturers (OEM), specifically two-wheelers (2W). The company has excellent OEM ties and a market share of more than 65% in 2W instrument clusters (dashboard instruments). The company is also the world’s second-largest maker of instrument clusters.CRISIL Rating Agency reported.
The company shares have delivered a return of 44 percent in six months and 85 percent in a year.
TVS Motor Company, Hero MotoCorp, Bajaj, Tata Motors, and JCB are Pricol’s top five customers, accounting for 65% of the company’s total domestic sales.
Written by Omkar Chitnis
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