This micro-cap auto ancillary stock gained 3.3 percent to a 52-week high price of ₹1,060 per share on Wednesday after the company board approved the proposal of a stock split in the ratio of 1:5.
Remsons Industries Ltd. belongs to the micro-cap category with a market capitalization of ₹602 crore. At 11:25 a.m., the shares were trading at ₹1,032 per share, up 0.58 percent from the previous close price on the National Stock Exchange.
The company board approved the sub-division / split of the company’s equity shares in a ratio of 1:5 from the face value of ₹ 10 to ₹ 2 each. This means that for every share held by the shareholder, they will get 5 additional shares. The company reported this in its exchange filing.
Remsons Industries Limited was established in 1971. It manufactures auto components like auto control cables, flexible shafts, gear shift systems, push-pull cables, and parking brake mechanisms. It exports mainly to the UK, Europe, North America, Brazil, Mexico, and SAARC countries.
The company’s revenue distribution is 76% from the Indian market and 24% from international markets, with manufacturing facilities strategically positioned in Pardi, Gurgaon, Daman, Pune, and Stourport (UK). Notable clients encompass Maruti Suzuki, Jaguar, Ford Motors, Ashok Leyland, and various others.
Remsons Industries Ltd. shares have gained a multibagger return of 146 percent in the last six months and 376 percent in a year. For example,a shareholder investment of ₹1 lakh in the company, would be worth ₹2.46 in the last six months.
According to a year-on-year comparison of financials, the company’s revenue climbed by 7 percent from ₹65.76 crores in Q3 FY23 to ₹70.33 crores in Q3 FY24. Within the same time period, the net profit climbed by 37 percent, from ₹2.67 crore to ₹3.67 crore.
Remsons Industries recently made a strategic investment in Uni-Automation’s Automotive Sensor Division, aiming to broaden its portfolio with state-of-the-art sensor technology and strengthen its role as a comprehensive systems manufacturer.
Written by Omkar Chitnis
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