Shares of this auto ancillary company jumped 3 percent in Thursday’s trading session after bagging an order worth Rs. 30 crores order from Tata Motors. The shares have delivered a multibagger return of 111 percent in six months to its shareholders.
With a market capitalization of Rs. 642 crores, the shares of Remsons Industries Ltd started Thursday’s trading session on a higher note at Rs. 968.70, gaining around 3 percent compared to its previous close of Rs. 922.70 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had bagged the fourth order from Tata Motors for the supply of winches used for spare wheel.
The company is currently supplying winches to successful models like Tigor, Altroz and Punch and the recent order was received for its new model Tata Nexon CNG. The total size of all the orders stands at Rs. 30 crores which will be executed over three years.
Looking at the company’s financial statements, the revenue increased by 8 percent from Rs. 76.33 crores during the September quarter to Rs. 82.22 crores in the December quarter. In addition, the net profits zoomed by 21 percent from Rs. 2.82 crores to Rs. 3.41 crores during the same timeframe.
Earlier, the company entered into a joint venture agreement with Aircom Group AG, to carry on the business of manufacturing and selling tyre mobility kits and its components for automobiles.
This joint venture aims to increase Remsons’ market share in the tyre mobility segment, offering products like tyre repair kits, sealants, air compressors, and plugs to enhance vehicle mileage per charge, especially with the increasing adoption of electric vehicles in India.
The auto ancillary company derives its revenue from diverse geographical regions worldwide. A substantial majority, accounting for 76 percent, is generated within India, reflecting its significant presence and operations in the domestic market. The remaining 24 percent of revenue originates from international markets outside India.
Additionally, the company boasts a robust clientele comprising prominent entities such as BMW, Ford, Harley-Davidson, and Hero MotoCorp, among others, for whom they provide their products.
Headquartered in Mumbai, Remsons Industries Ltd. is an automotive OEM components manufacturer supplying for two, three and four-wheeler vehicles, commercial vehicles and off-highway vehicles all over India and automotive OEMs globally.
Written By Vaibhav Patil
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