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Auto ancillary stocks in focus; Lumax, SSWL, Gabriel India hit record high

Lumax Ind, Talbros Automotive, Rane Engine, Rane Brake and Ucal Fuel were up over 5%

SI Reporter  |  New Delhi 

Steel Strips Wheels bags $ 55 mn order from US-based Elio Motors

Shares of auto ancillaries companies rallied by up to 16% on the BSE in intra-day trade in otherwise subdued market.

Lumax Industries, Talbros Automotive Components, Rane Engine Valve, Rane Brake Lining, Ucal Fuel Systems, Jay Bharat Maruti, PPAP Automotive, Phoenix Lamps and Hindustan Composites were up more than 4%, as compared to 0.03% decline in the S&P BSE Sensex at 02:19 pm.

Lumax Industries, the leader in automotive lighting and illumination products, hit a record high of Rs 1,584, up 16% to Rs 1,584 on expectation of good growth in the current financial year, with the new orders in pipeline.

While announcing March quarter results on May 15, the company said it had received orders to supply new age head lamps and rear lamps from Maruti Suzuki, Honda Cars, Honda Motorcycles, Suzuki Motorcycles & Tata Motors.

The company has undertaken an expansion at its Sanand facilities with a capital outlay of about Rs 100 crore, which is expected to commence operations from November 2017. The capex has been funded through internal accruals.

COMPANY LATEST PREV CLOSE GAIN(%)
LUMAX INDS. 1582.0 1369.7 15.5
TALBROS ENGG. 415.0 381.2 8.9
UCAL FUEL SYS. 222.5 208.6 6.7
RANE ENGINE VAL. 666.0 630.6 5.6
DUNCAN ENGG. 89.5 84.8 5.6
RANE BRAKE LIN. 1381.4 1310.8 5.4
HIND.COMPOSITES 641.0 611.2 4.9
PHOENIX LAMPS 198.0 188.8 4.9
PPAP AUTOMOTIVE 397.0 379.0 4.8
IST 1039.0 993.8 4.6
JAY BHARAT MAR. 644.6 618.2 4.3

Steel Strips Wheels (SSWL) too hit a new high of Rs 955, up 3%, extending its 4% gain in past two trading sessions, after Birla Mutual Fund acquired two percentage points stake in the company via open market.

On June 6, Birla Sun Life Mutual Fund (149,034) and Birla Mutual Fund Scheme (148,429) had purchased 297,463 shares of at price of Rs 885 per share.

PPAP Automotive up 5% to Rs 397, extending its past one month 35% rally on BSE. The company a leading manufacturer of automotive sealing systems, interior and exterior automotive parts said its earnings before interest, tax, depreciation and amortization (EBITDA) margin improved from 16.71% in Q4FY16 to 21.26% in Q4FY17.

The company has recently added Hyundai Motor India Limited as a new customer. It would be manufacturing automotive sealing parts like outer belts for them.

“Going forward, as the new capacities go on stream, the company will be able to better cater to its clients as well as push for higher wallet shares by increasing the number of parts per OEM. As revenues from IM parts being supplied to Maruti increase, revenues will also increase (revenues for IM parts in general fetch higher realizations than ASS),” analyst at Prabhudas Lilladher said in result update.

COMPANY LATEST ALL TIME HIGH PREV HIGH PREV DATE
GABRIEL INDIA 141.50 143.90 141.25 08-Jun-17
IST 1039.00 1070.00 1038.70 08-Jun-17
JAY BHARAT MAR. 644.00 659.90 657.30 11-May-17
LUMAX INDS. 1598.90 1598.90 1561.55 24-Apr-17
PPAP AUTOMOTIVE 397.00 398.05 381.00 08-Jun-17
RANE BRAKE LIN. 1377.05 1422.00 1399.00 15-Sep-16
STEEL STR. WHEEL 946.70 955.00 952.90 24-Apr-17
SWARAJ AUTOMOT. 52.90 52.90 52.90 05-Jun-17
TALBROS AUTO. 208.00 214.00 209.25 08-Jun-17
TALBROS ENGG. 415.00 434.00 399.60 02-Jun-17

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