The shares of one of the largest auto component manufacturers surged up to 7 percent to ₹1,350 per share on Friday after the company’s MD sold 6.99 percent in the company.
At 12:40 p.m., Sundaram Clayton Ltd shares were trading at ₹1,266.40, up 0.50 percent from the previous close on the National Stock Exchange. The company has a market capitalization of ₹2,562 crore.
As per NSE deals, Venu Srinivasan, the Chairman Emeritus and Managing Director of Sundaram Clayton sold 14.16 lakh shares, representing a 6.99 percent stake, for ₹1,239.99 each on March 14th, resulting in a transaction value of ₹175.61 crore.
Meanwhile,SBI Mutual Fund, a domestic institutional investor, purchased 7.74 lakh equity shares at a price of ₹1,240.00 per share, while Govindlal Mansukhlal Parikh bought 5.35 lakh shares at the same price.
Sundaram Clayton Ltd shares have gained 54 percent in the last six months and 58 percent in a year.
As of December 2023, Srinivasan held an 11.78 percent stake, constituting a portion of the overall promoter stake amounting to 74.45 percent. Foreign institutional investors hold a 1.01 percent stake in the company, while domestic investors hold 12.30 percent ownership.
Sundaram-Clayton Ltd. was formerly known as TVS Holdings Limited. A leading manufacturer of aluminium die-casting components. It supplies to major automotive OEMs, including TVSM, the Cummins Group, etc. Sundaram Clayton Ltd was set up by the TVS group and the UK-based Clayton Dewandre Holdings Ltd.
Sundaram-Clayton Ltd is in the business of manufacturing various automotive parts including flywheel housings, clutch housings, gear housings, filter heads, air connectors, lube oil cooler cover assemblies, turbochargers, compressor cover assemblies, charge air pipes, intake manifolds, and others for both heavy commercial vehicles and passenger cars.
The company caters to automotive and non-automotive industries across Asia, Europe, and the Americas.
The company experienced a 21 percent year-on-year revenue growth, climbing from ₹1,692 crore in FY21-22 to ₹2,053 crore in FY22-23. However, net losses surged from ₹17 crore to ₹108 crore over the same timeframe.
Written by Omkar Chitnis
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