With a market capitalization of Rs 7,620.62 crores, the stocks of opened their trading hour on Monday at Rs 1,722 and currently trade at Rs 1,730, gaining around 1.50 percent compared to the previous closing levels of Rs 1,705.50 apiece.
During the recent financial quarters, Shriram Pistons & Rings Limited’s basic business indicators, viz, operating revenues as well as after-tax profits, showed movements in opposing directions with the former, on one end, moving up from Rs 752 crores during Q2FY24 to Rs 766 crores during Q3FY24, and the latter, on the other end, slipping from Rs 113 crores to Rs 108 crores.
In addition to the above, the company’s ratio analysis portrays the return on equity (RoE) as well as return on capital employed (RoCE) showing decent up movements with the former from 13.13 percent during FY21-22 to 19.33 percent during FY22-23, and the latter, from 16.86 percent to 23.21 percent.
Emkay Global, one of the well-known domestic brokers, gave a ‘Buy’ recommendation on the stocks of Shriram Pistons & Rings Limited with a target price of Rs 2,450, indicating a potential upside of approximately 42 percent.
The rationale behind providing such a recommendation pertains to the company further strengthening its domination in the core products, of around 40-45 percent share in pistons, piston rings, etc. Moreover, the company’s scope in the scale of operations, manufacturing expertise, and ability to offer complete solutions support the aggressive stock price target.
The latest shareholding pattern data exhibits the company’s Promoters holding a 46.75 percent, and the Public (retail) Investors holding a 39.11 percent in the company
Shriram Pistons & Rings Limited is engaged in the business of manufacturing as well as marketing automotive components. Deriving a majority of revenue from domestic operations, the company’s product portfolio comprises piston pins, piston rings, etc. The company’s products are used in cars, two-wheelers, tractors, stationary engines, etc.
Written by Amit Madnani
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