Shares of this auto company surged by more than 9 percent after it announced a 1:1 bonus issue on June 21, 2023, along with its earnings for the March quarter.
NDR Auto Components is a small-cap company that is engaged in the manufacturing of seat frames and trims for four-wheelers and two-wheeler vehicles and other accessories relating to car seats.
The company informed the bourses that it has announced a bonus issue in the ratio of 1:1 and it has set July 24, 2023 as the record date for the same. Therefore, eligible shareholders will receive one bonus equity share for every equity share held in the company, as on the record date. The bonus issue is subject to the approval of the shareholders and other applicable statutory and regulatory approvals.
NDR Auto Components’ consolidated net profit during the March quarter (Q4FY23) jumped 64.22 percent to ₹ 9.96 crore compared to ₹ 6.06 crore in the same period last year.
In the past year, the company’s share price increased by 126 percent to give multibagger returns. Therefore if an investor had invested ₹ 1 lakh in its shares a year ago, the value of their holdings would have been ₹ 2.26 lakhs today!
With a market capitalization of ₹ 518 crores, NDR Auto Components is a micro-cap company. It has a low return on equity of 13.74 percent but an ideal debt-to-equity ratio of 0.15. Its shares were trading at a price-to-earnings ratio (P/E) of 18.44, which is significantly lower than the industry P/E of 46.57, indicating that the stock might be undervalued as compared to its peers.
Written by Simran Bafna
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