GMM Pfaudler snaps nine-day losing streak

GMM Pfaudler rose 1.29% to Rs 3686.95 amid bargain buying after a recent steep slide.

The stock tumbled 38.5% in the past nine sessions while the benchmark S&P BSE Sensex slipped 2.7% during the same period. It has fallen 46.67% from its record high of 6,913.85 hit on 12 August 2020.

The stock came under pressure after GMM Pfaudler's promoters on 21 September 2020 offered to sell over 25.71 lakh equity shares, constituting approximately 17.59% paid-up share capital of the company, through offer for sale (OFS) route. The floor price for the OFS was set at Rs 3500 each, a 33.22% discount to GMM's closing price of Rs 5241.10 on 21 September.

GMM Pfaudler is a supplier of process equipment to the pharmaceutical and chemical industries. The company has a diversified product portfolio which includes mixing systems, filtration & drying equipment, engineered systems and heavy engineering equipment.

The company reported 8.5% rise in consolidated net profit to Rs 19.19 crore on 2.8% increase in net sales to Rs 154.43 crore in Q1 June 2020 over Q1 June 2019. EBITDA margin fell to 17.8% as on 30 June 2020 from 18.4% as on 30 June 2019.

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