This electricals microcap stock hit 20% upper circuit after the first hour of market open. As per BSE filing dated 26th August 2023, The company has announced, it has on its agenda to finalize a strategic acquisition of a domestic private firm in an all stock transaction. The stock is currently 2.5% away from its 52 week high.
Wonder Electricals Ltd (“Wonder Electricals”) said in its filing that it is acquiring Uttaranchal Industries Pvt Ltd in an all stock sale. The company is to issue non convertible, redeemable preferred shares as consideration for the business. The matter will be finalized and approved in a meeting held on Wednesday, 30th August, 2023.
The stock rose 20% today with volumes that were 8x the monthly average and 16x the previous week average. Wonder Electricals stock has returned 95% over a 1 year period and although it has seen some range bound trading for months several times, overall it has been on an uptrend since November 2020. It is trading 10% above its 20 day moving average and 20% above its 200 day moving average at a P/E 55.5, lower than industry average of 58.7.
Wonder Electricals engages in the manufacture and supply of ceiling, exhaust, pedestal, and brushless DC fans in India. The company has shown a decent yet cyclical financial pattern with higher revenues in Q4. The company has seen 12% YoY top-line growth in June quarter 2023.
According to available public sources (MCA), Uttaranchal Industries is registered in New Delhi, incorporated in 1982 and is involved in manufacture of electric fans, exhaust fans and electric lamps. It sells products primarily in Haridwar, Uttarakhand. It has, according to a CRISIL rating dated April 2019, an investment grade rating of BB+ (stable) for long trend debt up to Rs. 5 crore.
Written by Sandeep R
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