Shares of this smallcap company jumped 3 percent in Tuesday’s trading session after reporting an increase in net profits by 126 percent YoY. The shares have delivered a multibagger return of 109 percent in just six months to its shareholders.
With a market capitalization of Rs. 1,345 crores, the shares of Automotive Stampings & Assemblies Ltd started Tuesday’s trading session on a higher note at Rs. 855 compared to its previous close of Rs. 829.90. During the trading session, the shares hit a high of Rs. 875, gaining around 3 percent and are currently trading at Rs. 839 apiece.
Such a positive movement in the share price was observed after the company announced its quarterly and financial year ended 31st March 2024 results. The revenue increased by 7.4 percent from Rs. 216.43 crores during the December quarter to Rs. 232.48 crores in the March quarter. In addition, the net profits zoomed by 61 percent from Rs. 4.74 crores to Rs. 7.62 crores during the same timeframe.
Comparing these metrics on a YoY basis, the revenue improved by 11 percent from Rs. 210.11 crores during Q4FY23 to Rs. 232.48 crores in Q4FY24. On the other hand, the net profits magnified by 126 percent from Rs. 3.37 crores to Rs. 7.62 crores during the same period.
The company has four large-sized manufacturing plants in Western India and Northern India with a total capability to supply nearly 30,000 tonnes of components and assemblies a year.
With a range of presses of hydraulic and mechanical, single-acting and double-action and other required equipment of international standard, the plants have capabilities for making complex sheet metal components of different sizes.
Furthermore, the company serves esteemed vehicle manufacturers such as Tata Motors Limited, General Motors India Private Limited, Fiat India Automotive Private Limited (FCA), Piaggio Vehicles Private Limited, Ashok Leyland, JCB, Tata Hitachi, and MG Motors.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 12.68 percent and a return on capital employed (RoCE) of 13.84 percent for the period spanning FY22-23. Additionally, the net profit margin during the same timeframe was 1.01 percent.
Automotive Stampings and Assemblies Limited (ASAL) is a manufacturer and supplier of sheet metal components, welded assemblies and modules for passenger cars and commercial vehicles.
The product range includes Body-In-White (BIW) structural panels, Skin panels, Fuel tanks, Rear Twist Beams, Oil sumps and Suspension parts For Automobile and offload vehicle segments. Presently, Tata AutoComp Systems holds a 75 percent stake in the company.
Written By Vaibhav Patil
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