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Oct 14, 2024

Auto ancillary stock jumps 17% after DII bought 8.61 Lakh shares in the company - Trade Brains

by Trade Brains | Sep 18, 2024 | 2:56 pm | News, Trending News | 0 comments The shares of the engine component manufacturer gained up to 17 percent after India’s well-known financial advisor firm

by Trade Brains | Sep 18, 2024 | 2:56 pm | News, Trending News | 0 comments

The shares of the engine component manufacturer gained up to 17 percent after India’s well-known financial advisor firm bought 8.61 equity shares in the company.

With a market capitalization of Rs 771.67 crore, the shares of Menon Bearings Ltd were trading at Rs 137.40 per share, increasing around 14 percent as compared to the previous closing price of Rs 120.65 apiece.

According to the exchange, Ambit Investment Advisors Private Limited, a DII bought 8,61,704 equity shares which are equivalent to 1.5 percent with an average price of Rs 120. This translation is valued at Rs 10.3 crore.

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As of June 2024, Nitin Ram Menon, a promoter of the company holds 1.6 crore equity shares which is equivalent to 29.29 percent of Menon Bearings Ltd, however, the promoter sold 9,73,326 equity shares at an average price of Rs 120.01 per share.

Also Read: Cement stock jumps 3% after SBI Mutual Fund bought 1.26% stake in the company

Examining the company’s financial condition, revenue ramped up by 28 percent from Rs 55.16 crore in Q1FY24 to Rs 39.96 crore in Q1FY25, during the same time frame net profit plummeted significantly by 35 percent from Rs 7.33 crore to Rs 4.78 crore.

The company has planned a capital expenditure of ₹30 crore for FY24-25, primarily directed towards upgrading plant and machinery. Approximately 70% of this investment will focus on enhancing production efficiency and capacity

The company has diversified Marquee Clientele across Industries which includes Mahindra Group, Tata Group, Force, Eicher, Greaves, and others.

The company’s critical ratios show that the return on equity declined from 24.52 percent in FY22-23 to 17.55 percent in FY23-24, while the return on capital employed magnified from 31.86 percent to 22.24 percent. The net profit margin (NPM) for fiscal year 23-24 is 12.34 percent.

Menon Bearings Limited manufactures automotive components. The company’s products include bi-metal engine bearings, bushes, and thrust washers for light and heavy automotive engines, two-wheeler engines, compressors for refrigerators, air conditioners, and other components.

Also Read: Tata group stock jumps after receiving work order from Maharashtra Govt for power project

Written by:- Abhishek Singh

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

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