With a market capitalization of Rs 463 crores, the stocks of Munjal Showa Limited zoomed during the last couple of trading hours today and closed at Rs 115.85, gaining around 14 percent as compared to the previous closing price of Rs 101.60.
The company’s stock hit its 52-week high mark today at a price of Rs 121.90. Year-to-date, the scrip has gained nearly 16 percent ranging from Rs 99.15 to the current price levels.
One of the major causes leading the stock prices to surge today is the announcement of Q4 as well as Annual results for FY2022-23. Facts & figures pertaining to the same are been discussed later on in the report.
Moreover, the company’s Board also recommended a Final dividend of Rs 4.50 (225 percent of its Face Value of Rs 2) for the same financial year. Payment of the same is subject to shareholder approval.
Munjal Showa Limited operates as an ancillary and is engaged in the process of manufacturing auto components for the two-wheeler and four-wheeler industries. The primary products of the company include shock absorbers, gas springs, etc. Geographically, the company derives a majority of its revenue from domestic operations within India.
Having a walkthrough of the sequential financials reported by the company, the operating revenues showed a slight fall in numbers going down from Rs 308 crores in Q3 to Rs 299 crores in Q4. On a contrasting note, the Profits After Tax (PAT) figures showed a huge movement from Rs 3 crores to Rs 21 crores showing an increase of 600 percent.
On a yearly basis, the operating revenues as well as PAT of the company rose with the former increasing from Rs 1,060 crores during FY21-22 to Rs 1,241 crores in FY22-23 and the latter, keeping the timeframe the same, moving up from Rs 12 crores to Rs 32 crores representing an increase of 167 percent.
According to the latest shareholding data released by the company, Promoters hold a 65.02 percent stake, and Foreign Institutional Investors hold a 1.26 percent stake in the company.
Written by Amit Madnani
