Tega Ind at record high after 4% stake sale by promoters; up 53% since May

On June 19, Tega's promoters sold over 2.7 million equity shares, amounting to 4.1 per cent of the total equity share capital, to meet the minimum public shareholding norms

Shares of Tega Industries surged 7 per cent to hit a record high of Rs 995 on the BSE in Wednesday’s intra-day trade. It surpassed the previous high of Rs 985, touched on June 13, 2023.

In the past two trading days, the stock of the industrial products company has rallied 9 per cent after its promoters sold over 2.7 million equity shares or 4.1 per cent of the total equity share capital on June 19, 2023 to meet the minimum public shareholding norms.

Mehul Mohanka (2 million shares or 3.01 per cent stake) and Nihal Fiscal Services Private Limited (724,950 shares or 1.09 per cent stake) collectively sold 2.72 million shares of Tega Industries via open market, the company said in an exchange filing. The promoters sold the shares at an average price of Rs 907 per share.

Tata AIA Life Insurance Company has bought 401,421 shares of Tega Industries via bulk deals, the data shows.

Meanwhile, since May, the stock price of Tega Industries has zoomed 53 per cent as compared to a 3.8 per cent gain in the S&P BSE Sensex. 

Tega Industries is a leading manufacturer & distributor of specialized ‘critical to operate’ & recurring consumable products. The company caters to global mineral beneficiation, mining & bulk solids handling industry.

For the January-March quarter (Q4FY23), the company had reported a strong 58.1 per cent year-on-year (YoY) jump in its consolidated net profit at Rs 77.30 crore on strong operational performance.

The company’s consolidated revenues grew 36.7 per cent YoY to Rs 396.4 crore. Absolute earnings before interest, taxes, depreciation and amortization (EBITDA) came at Rs 102.8 crore, up 49.1 per cent YoY with EBITDA margins expanding by 217 bps YoY to 25.9 per cent.

With the new acquisition of McNally Sayaji, Tega industries is expected to yield a 15-20 per cent growth for the next few years, along with a revenue growth of 5 per cent. The move is expected to bolster Tega's offerings in the material handling space, in line with the company's strategy of backward integration, according to analysts.