Shares of this auto ancillary stock under the ‘micro-cap’ category gained up to 8 percent in Thursday’s trading session after the company posted results for Q2FY24. In the past six months, the company’s stock has soared nearly 20 percent.
With a market capitalization of Rs 650 crores, the stocks of Rane Brake Linings Limited opened their trading hour on Thursday at Rs 826.40 and currently trades at Rs 841. The scrip witnessed an intra-day high of Rs 873.60 indicating a gain of approximately 8 percent compared to the previous close of Rs 810.60 apiece.
Such a rally in the company’s stock price is seen after a BSE filing about the announcement of financial results for the quarter ending September 2023.
The company, on a QoQ basis, reported an increase in the basic business parameters such as the operating revenues and after-tax profits with the former increasing from Rs 152 crores during Q1FY23-24 to Rs 158 crores during Q2FY23-24, and, the latter, keeping the timeframe the same, doubled from Rs 5 crores to Rs 10 crores.
In congruence with the pattern, the company, on a YoY basis as well, increased its operating revenues from Rs 141 crores during Q2FY22-23 to Rs 158 crores during Q2FY23-24. Moreover, the after-tax profits of the company rose from Rs 6 crores to Rs 10 crores during the same time horizon.
Historically, the company has been successful in increasing its profitability ratios with the return on equity (RoE) jumping from 11.27 percent during FY21-22 to 13.28 percent during FY22-23, and, the return on capital employed (RoCE) shifting up from 14.44 percent to 17.71 percent.
The latest shareholding data of the company, as per the quarter ended September 2023, portrays the Promoters holding a 70.93 percent stake, and the Public (retail) investors holding a 25.44 percent stake in the company.
Rane Brake Linings Limited is engaged in the business of manufacturing and marketing auto components. The company’s product portfolio comprises brake linings, clutch facings, disc pads, brake shoes, and railway brake blocks for passenger cars, commercial vehicles, utility vehicles, two-wheelers, etc.
Written by Amit Madnani
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