Here's why Sharda Motor Industries share price rallied 6% on February 25

Sharda Motor share rose after it entered into an agreement with Avadh Rail Infra Limited, to transfer the leasehold rights of "land and building" in Haridwar for Rs 23.05 crore

Sharda Motor Industries share price: Sharda Motor Industries share price zoomed as much as 6.03 per cent to hit an intraday high of Rs 1,720.70 per share.

 

The uptick in Sharda Motor Industries share price came after the company announced that it has entered into an agreement with Avadh Rail Infra Limited, to transfer the leasehold rights of “land and building” of the company located at Ranipur, Haridwar (Uttranchal) having an area of approximately 12,325 sq. mts., for Rs 23.05 crore.

 

In an exchange filing, Sharda Motor Industries said, “We would like to inform you that the Company has entered into an agreement to transfer the leasehold rights over the land and building of the Company situated at Haridwar.”

 

The sale is expected to be completed in 60 days from the date of execution of the Agreement.

 

“Rs 23.05 crore to be received within a period of 60 days from the date of the Agreement as above/ on or before registration of transfer with concerned authority, whichever is earlier,” Sharda Motor Industries said in a statement.

 

About Sharda Motor Industries

 

Sharda Motor Industries engages in the manufacturing and assembly of auto components and white goods components. The company’s diverse product portfolio includes exhaust systems, catalytic converters, suspension systems, sheet metal components, and plastic parts, primarily catering to the automotive industry. 

 

Sharda Motor is a key player in the emissions control system and control arm segments, with a market share of approximately 30 per cent in emissions control systems and 10 per cent in control arms for passenger vehicles in India.

 

With a strong customer base that includes major automotive manufacturers like Hyundai, Mahindra, Tata, and Ashok Leyland, Sharda Motor relies heavily on its top two clients—M&M and Hyundai—who contribute around 71 per cent of its revenue in the exhaust business. 

 

The company operates 10 manufacturing units, including joint ventures, and has an R&D center and sales offices across India. It boasts a production capacity, manufacturing up to 1 million exhaust systems and 180,000 suspension systems annually. Its backward integration with tube mills and stamping plants further strengthens its operational capabilities.

 

The market capitalisation of Sharda Motor Industries is Rs 4,812.34 crore, according to BSE. The company falls under the BSE SmallCap category.

 

At 12:30 PM, Sharda Motor Industries share price was trading 3.32 per cent higher at Rs 1,676.55. In comparison, BSE Sensex was trading 0.28 per cent higher at 74,664.89 levels.