Bharat Gears advances after availing term loan

Bharat Gears gained 1.83% to Rs 133.35 at 10:40 IST on BSE after the company said that the company's finance committee of the board approved the proposal to avail a term loan of Rs 110 crore.

The announcement was made after market hours yesterday, 31 May 2017.

Meanwhile, the S&P BSE Sensex was up 44.11 points, or 0.14%, to 31,189.91. The S&P BSE Small-Cap index was up 132.81 points, or 0.88%, to 15,213.02.

Higher than usual volumes were witnessed on the counter. On the BSE, 25,992 shares were traded in the counter so far, compared with an average volume of 11,177 shares in the past one quarter.

The stock had hit a high of Rs 137 and a low of Rs 132.50 so far during the day. The stock had hit a record high of Rs 170.75 on 6 October 2016. The stock had hit a 52-week low of Rs 74.50 on 2 June 2016.

The stock has jumped 13.87% in five sessions to its ruling price of Rs 133.35 from a close of Rs 117.10 on 25 May 2017.

The stock had outperformed the market over the past one month till 31 May 2017, rising 4.43% compared with 4.1% gains in the Sensex. The scrip had outperformed the market in past one quarter, gaining 17.9% as against Sensex's 8.36% gains. The scrip had also outperformed the market in past one year, gaining 72.19% as against Sensex's 16.79% gains.

The small-cap company has an equity capital of Rs 7.82 crore. Face value per share is Rs 10.

Bharat Gears said that the finance committee of board of directors of the company approved the proposal to avail a term loan of Rs 110 crore from KKR India Financial Services for repaying some of the existing term debts, working capital requirements and capital expenditure, among others.

Bharat Gears' net profit rose 96.3% to Rs 2.1 crore on 7.7% rise in net sales to Rs 107.33 crore in Q4 March 2017 over Q4 March 2016.

Bharat Gears is a supplier of automotive gears and heat treatment furnaces. The company manufactures a wide range of ring gears and pinions, transmission gears and shafts, differential gears, gear boxes for the automotive industry.

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