With a market capitalization of Rs 413 crores, the shares of NDR Auto Components Limited gained nearly 5 percent closing at Rs 700. The stock witnessed an intra-day high of Rs 744.90 which also became the stock’s 52-week high mark. The intra-day high levels represent a 12 percent increase as compared to the previous closing price of Rs 664.25.
Keeping a purview of 2 years, the stock has delivered multibagger returns of around 208 percent to its stakeholders. It means that if someone would have invested Rs 1 Lakh in the stock, it would have converted to Rs 3.08 Lakhs within a period of 2 years.
NDR Auto Components Limited is a company based in India primarily engaged in the process of manufacturing, fabricating, and assembling every kind of automotive component. The Company produces and manufactures seat frames as well as trims for two-wheeler and four-wheeler vehicles and other accessories in relation to car seats.
Digging into the quarterly financials of the company, the revenues have increased from Rs 93.76 crores in Q2 to Rs 105.73 crores in Q3. Due to increasing expenses and ineffective cost management, the operating as well net profits of the company were affected with the former going down from Rs 8.89 crores to Rs 7.46 crores and the latter moving down from Rs 6.13 crores to Rs 4.26 crores.
On a positive note, the basic profitability parameters such as the return on equity (ROE) and return on capital employed (ROCE) improved in recent financial years with ROE shifting from 3.66 percent during FY20-21 to 5.54 percent in FY21-22 and ROCE moving from 5.24 percent to 7.71 percent during the same period.
Due to the increased costs mentioned above, the net profit margins, too, took a hit reducing from 5.58 percent during FY20-21 to 4.4 percent in FY21-22. The company resorted to debt financing during FY21-22 with the debt-to-equity ratio reported at 0.01 times.
Written by Amit Madnani
