Shares of this auto ancillary company jumped around 3 percent in Monday’s trading session after receiving a patent for their product. The shares have delivered a multibagger return of 131 percent to its shareholders in one year.
With a market capitalization of Rs. 2,989 crores, the shares of Sandhar Technologies Limited started Monday’s trading session on a flatter note at Rs. 485.30. During the trading session, the shares hit a high of Rs. 504.75, gaining around 3 percent and are currently trading at Rs. 495 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had been granted a patent, by the Controller of Patents, for an invention entitled “System for Controlled Actuation of Electronic Handle Lock of a Vehicle and Method Thereof for 20 years, with effect from September 5, 2022.
Coming onto the company’s financial statements, the revenue increased marginally by around 1 percent from Rs. 885 crores during the September quarter to Rs. 890 crores in the December quarter. On the other hand, the net profits declined by around 11 percent from Rs. 28 crores to Rs. 25 crores during the same period.
The company aims to continue its growth trajectory by leveraging robust customer demand, increasing content share per vehicle, and transitioning new projects into mass production.
Throughout the fiscal year 2022-23, the company secured five patents, including innovations like Motorized Auto Locks and Keyless Fuel Tank Caps for two-wheelers. Additionally, they developed Magnetically Operated Handle Lock Cum Ignition Switch, Electric steering column lock, and Roll Over Valve for motorcycles. Concurrently, they allocated approximately Rs. 95.93 crores for Capex and Investments in Subsidiaries and Joint Ventures.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 6.73 percent during FY 21-22 to 8.27 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 7.65 percent to 8.81 percent during the same timeframe. Furthermore, the net profit margin increased from 2.41 percent during FY21-22 to 2.53 percent during FY22-23.
Headquartered in New Delhi, Sandhar Technologies was incorporated in 1987. The company and its joint ventures are primarily engaged in the manufacturing and assembling of automotive components for the automotive industry in India.
Written By Vaibhav Patil
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