This stock has zoomed 49% in 6 days after Vijay Kedia bought stake

Illustration by binay sinha
Shares of Talbros Automotive Components rallied 8 per cent to hit a new high of Rs 442 on Tuesday, extending Monday's 7 per cent surge on the National Stock Exchange (NSE).

In the past six trading days, the stock of the auto ancillary company has zoomed 49 per cent after ace investor Vijay Kedia bought nearly 2 per cent stake in the company via open market.

On November 30, 2021, Vijay Kishanlal Kedia purchased 205,524 shares, representing 1.66 per cent stake, in Talbros Automotive via bulk deals on the NSE. He bought 215,524 shares at price of Rs 337.48, while sold 10,000 shares at Rs 339.70 on the NSE, the exchange data shows. The names of the corresponding buyers and sellers could not be ascertained immediately.

On clarification on significant price movement, Talbros Automotive said that there is no undisclosed / price sensitive information or any impending announcement / corporate action which needs to be informed to the exchange at this point of time.

Talbros Automotive Components manufactures heat shield Gaskets which are critical for heat, sound and vibration insulation and is the future for automobiles and a good induction to global OEMs. This product makes the engine more powerful and the lesser space is required to put the engine.

"India being a part of EuroVI, the Company is going to have a huge opportunity for this product line going forward. The Company’s heat shields business is growing in the domestic as well as export markets," Talbros Automotive had said in its financial year 2020-21 (FY21) annual report.

Based on the Company's past performance, one major premium customer and the Company are putting joint efforts in the development of MLS Gaskets which are expected to come into commercial production by 2030. This will help the Company for new additions and growth to its business. The Company is also developing Oil Pan Gaskets as per requirements of its customers. Pune plant of the Company has also bagged orders for off-road business for Diesel Generator (DG) parts, it added.

The Company further said it is also in the process of executing an order book of $31 million over the next five years for both domestic and the international market. It is also constantly working on its export business for increasing the export percentage to its topline.

At 11:35 am, the stock was trading 5 per cent higher at Rs 409 on the NSE, as compared to a 1.6-per cent rise in the Nifty50 index. A combined 270,000 equity shares had changed hands on the counter on the NSE and BSE till the time of writing of this report.

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