The trading volumes on the counter surged more than four-fold. A combined 2.37 million shares representing 12.7% of total equity of TVS Electronics have changed hands on the BSE and NSE till 10:14 am.
In past one-week, the stock has surged 77% from Rs 91 on November 22, as compared to 2.2% rise in the Nifty50 index.
On Monday, November 28, Rohan Hegde, an investor, bought 96,162 shares or 0.52% stake in the company through open market transaction. He purchased these shares at the average price of Rs 138.21, the NSE bulk deal data shows. LINK
TVS Electronics has entered into distribution services for mobile phones, the company said while announcing its Q2 results. The company said this is a large volume, large value business, with low margins. It believes despite the low margin nature of the distribution business, it can be a strategic longer term opportunity for its other offerings.
The distribution business had posted profit before interest and tax (PBIT) of Rs 2.72 crore in September quarter (Q2FY17) against Rs 40 lakh in the same quarter last year. While, IT products & technical services segment reported PBIT of Rs 25 lakh against Rs 2.94 crore in the corresponding quarter of previous fiscal.
Revenues from distribution business jumped almost six-fold to Rs 647 crore in Q2FY17 from Rs 114 crore in a year ago quarter.