Banco Products surges 17%, hits record high on 1:1 bonus, strong Q2

The company observed an upturn in the OEM business in terms of peak volumes with some of the company's clients due to positive market demands amongst other factors

Banco Products shares hit a record high of Rs 821.70, as they surged 17 per cent on the BSE in Thursday’s intra-day trade after its board recommended issue of bonus shares in the ratio of 1:1 i.e. 1 new equity share for every 1 existing equity share to the eligible equity shareholders of the company as on the record date.

 

The auto ancillary company has announced bonus shares after a gap of 17 years. Earlier, in August 2007, Banco Products had issued bonus shares in the ratio of 1:1.

 

At 09:40 am; the stock was trading 16 per cent higher at Rs 811.80, as compared to 0.16 per cent rise in the BSE Sensex. It surpassed its previous high of Rs 798 touched on July 29, 2024. The stock has bounced back 59 per cent from June month low of Rs 517.70 on the BSE.

 

Meanwhile, Banco Products reported a more-than-doubled net profit at Rs 138.70 crore for the second quarter ended September 2024 (Q2FY25). The company had posted a net profit of Rs 66.11 crore in a year ago quarter. Gross sales increased 23.8 per cent year-on-year at Rs 888.81 crore against Rs 717.91 crore in Q2FY24.

 

Banco Products is engaged in manufacturing and selling of Heat exchangers/Cooling systems. The company caters to both domestic and international market.

 

The company in its FY24 annual report said that it has observed an upturn in the original equipment manufacturer (OEM) business in terms of peak volumes with some of the company’s clients as compared to the previous fiscal year due to positive market demands amongst other factors.

 

Alterations in the emission norms for off highway and construction machinery to Bharat Stage V, along with new norms for air conditioned cabins for commercial vehicles and alternative fuel applications have opened up a range of new opportunities, the company said.

 

In general, the OEM customer expectations with respect to product thermal efficiency, compact packaging of cooling modules, lower weight targets for saving fuel and increased product reliability have taken the company to newer horizons of business development and achievements, the management said.

 

In electric vehicle (EV) and alternative energy applications market, Banco Products have begun participation in product development and supply to selected customers in cooling systems, gaskets and sealing solutions which includes expanding customer bases both in the domestic and global markets.