Sundram Fasteners zooms over 50% in six days on robust Q1 results

A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai (pic: Reuters)
Sundram Fasteners has moved higher to its record high of Rs 303, up 20% on the BSE in intra-day trade, extending its past five days rally, after reported a robust set of numbers for the quarter ended June 30, 2016 (Q1FY17).

Since August 8, in past six trading sessions, the stock zoomed 58% from Rs 192, as compared to 0.23% decline in the S&P BSE Sensex.

TVS Group Company engaged in auto parts & equipment business reported net profit of Rs 75.55 crore in Q1FY17 against Rs 38.51 crore during the same period in the previous year.

The EBITDA (earnings before interest, depreciation and taxes) margin expanded 465 basis points to 19.63% from 14.98%, due to volume growth, product mix and specific cost reduction initiatives.

The interest cost has been contained within limits on account of better working capital management, Sundram Fasteners said.

The automotive industry and hence the automotive component market has shown promising growth and will continue to do so due to the prospect of a good monsoon, robust economic growth and higher disposable income available due to the recently pay commission increase, it added.

At 11:01 am, the stock was up 15% at Rs 291 on the BSE, as compared to 0.22% rise in the benchmark index. The trading volumes on the counter surged more than three-fold with a combined 2.7 million shares changed hands on the BSE and NSE so far.

 


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