TVS Electronics surges on expansion plans

The stock rallied 10% to Rs 47.65 on the BSE.

Shares of TVS Electronics has surged 10% to Rs 47.65 on the BSE after the company announced that it will enter into agreements and business arrangements with mobile manufacturers or wholesale distributors.

“With a view to broad base its product business, the Company has decided to enter into agreements and appropriate business arrangements with mobile manufacturing companies or wholesale distributors, for order fulfillment services whenever such opportunities arise,” TVS Electronics said in a BSE filing.

While these services could enhance revenues substantially, the net margins on such activities are expected to be very thin.

The Company believes that such opportunities provide good collateral business benefits for repair and warranty management services for these products in the medium to long term.

TVS Electronics is a market leader in the Dot Matrix Printer and is well established in sale and services of Point of Sale products. The Company is also a leader in providing warranty and repair management services to reputed brand owners in information technology, banking and mobile communications segments.

The stock opened at Rs 45.80 and touched a high of Rs 50.50 on the BSE. Till 1051 hours, a combined 164,617 shares changed hands on the counter on the BSE and NSE.