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Shares of this steel stock under the ‘small-cap’ category jumped approximately 14 percent after a Foreign Institutional Investor (FII) bought a stake in the company via a Bulk Deal on April 1st, 2024. In the past year, the company’s stock has jumped close to 50 percent for its holders. 

With a market capitalization of Rs 1,189.88 crores, the stocks of Sat Industries Limited started their trading session on Tuesday at Rs 96.54 and currently trades at Rs 105.22, gaining around 14 percent compared to the previous closing levels of Rs 93.17 apiece. 

Such bullish share price movements were observed today after Societe Generale, one of Europe’s leading financial services groups, bought a fresh stake in the company on 1st April 2024. 

As per the Bulk Deal data available with the National Stock Exchange (NSE), the Foreign Investor bought 7 lakh equity shares at an average trading price of Rs 93.10 per share. 

During the recent financial years, the company’s basic business indicators, viz, its operating revenues as well as after-tax profits, showed a dip in numbers. 

The former reduced from Rs 137 crores during Q2FY24 to Rs 118 crores during Q3FY24, and the latter, during the same period, slipped from Rs 175 crores, magnified due to high inflows from other sources, to the normal levels of Rs 15 crores. 

Due to an average financial performance annually, the company’s return ratios were reported at decent numbers during FY22-23 with the return on equity (RoE) reported at 16.37 percent and the return on capital employed (RoCE) at 18.63 percent. 

According to the latest shareholding pattern data available, the company’s Promoters hold a 51.59 percent stake, and the FIIs, sequentially reducing their stake, currently hold a stake of 0.75 percent in the company. 

Sat Industries Limited is a company based in India that, through its subsidiary and associate companies, is engaged in various business lines including international trading, leasing of assets, manufacturing of flexible packaging, hose pipes, etc. It also offers stainless steel hose assemblies, different types of fittings, and couplings as per customer requirements. 

Written by Amit Madnani

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