The share price of this micro-cap tyre company tumbled around 4 percent to an intraday low of Rs 59.10 per share on Wednesday despite the company announcing the incorporation of its subsidiary company in the UAE.
With a market capitalization of Rs 72.40 crores, Viaz Tyres Limited’s shares tumbled around 5 percent, trading at Rs 59.10 apiece on Wednesday’s afternoon session. The shares of this company generated an overall return of 28.12 percent over the past year.
What happened:
According to Viaz Tyres Ltd’s stock exchange filings, the firm announced that its subsidiary company, Autobots Trading FZC, has been incorporated in the United Arab Emirates (UAE) with an authorized capital of AED 100,000.
The filings also mention that Viaz currently holds 90 percent of the shares of its subsidiary company by paying an acquisition price of AED 90,000. The stakes are divided into 90 shares of AED 1,000 each. The industry in which Autobots Trading FZC operates is general trading.
Why it matters:
The primary aim of this incorporation for Viaz is to engage in the trading of tubes, tyres, engine oils, automobile accessories, and other related products, as stated in the filing.
Financials:
Reviewing the financials of Viaz Tyres on a year-on-year basis, the revenues rose by 11.1 percent from Rs 45 crores in FY23 to Rs 50 crores in FY24. In the same time frame, the net profits increased from Rs 2.02 crores to Rs 2.37 crores, demonstrating a 17.3 percent increase.
Ratios:
In terms of return ratios for the year 2024, it has reported a return on equity (ROE) of 7.08 percent and a return on capital employed (ROCE) of 11.68 percent.
Shareholding Pattern:
As of March 2024, 73.08 percent of the firm is owned by promoters, with the remaining 26.92 percent is held by the public.
Product Portfolio:
Viaz Tyres Limited manufactures various products such as Inner tubes, Bicycle Tyres, Engine lubricants and Grease. Viaz also deals in ancillary products like Off The Road (OTR) Tyre tubes and Animal Driven Vehicle (ADV) Tubes, Engine Oil, and Grease on white labeling bases.
Geographical Presence:
Viaz Tyres currently operates in five countries which are the United States of America, Turkey, Romania, United Arab Emirates, and Colombia.
About the Company:
Incorporated in 2018, Viaz Tyres Limited is an Ahmedabad-based company that is engaged in the manufacturing of rubber tubes for bicycles, two and three-wheelers, passenger vehicles, and heavy-load industrial vehicles. Viaz also supplies and exports to various countries such as Libya, India, Oman, USA, Dubai, Turkey, Romania, Egypt etc.
Written By Zahal
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