This Kirloskar group stock surges 15% after Ajay Upadhyaya buys 0.6% stake

Shares of Kirloskar Electric Company (KECL) hit a 52-week high at Rs 185.70, as they surged 15 per cent on the National Stock Exchange (NSE) in Thursday’s intra-day trade backed by heavy volumes after investor Ajay Upadhyaya bought nearly 1 per cent stake in the company via open market.

On Wednesday, May 8, 2024, Ajay Upadhyaya purchased 392,135equity shares representing 0.59 per cent stake of KECL at price of Rs 158 per share on the NSE, the bulk deal shows. However, Ajay Upadhyaya had sold 12,135 shares of KECL at Rs 151.29 per share, data shows.

As per corporate shareholding filed for March 31, 2024, people matching Ajay Upadhyay publicly held 14 stocks with a net worth of over Rs 764 crore, Trendlyne website data shows. Ajay Upadhyay holds stake in the companies such as Elecon Engineering, Navin Fluorine International, Genus Power Infrastructure and Skipper.

Meanwhile, at 11:12 am; KECL was trading 9 per cent higher at Rs 175 on the NSE, as compared to 0.74 per cent decline in the Nifty 50. As many as 5.37 million equity shares representing 8 per cent of the company changed hands on the NSE, the exchange data shows.

The stock surpassed its previous high of Rs 163.30 touched on February 7, 2024. In the past two weeks, the market price of KECL has zoomed 57 per cent.

With regard to significant movement in price of the company’s security, KECL on May 4 clarified that the price fluctuations in the company’s security is market driven and the company has no comments to offer.

The company has been compliant with regulation 30 of the SEBI LODR Regulations and that as on date there is no material relevant information/ announcement pending for disclosure, bearing on the performance/operations of the company, KECL said.

KECL is one of the leading companies in India which manufactures and supplies motors which are used in electric vehicles. The company’s electric vehicle (EV) motors have proven to be a resounding success in the market, exceeding expectations and driving significant advancements in the electric vehicle industry.

The company’s valued customers includes Indian Railways, all major industry houses including Tata, Reliance, Aditya Birla Group, Jindal Group, GMR group, ESSAR, Mahindra & Mahindra and also leading PSUs such as BHEL, NTPC, EIL, Nuclear power, NHPC, BPCL, HPCL, IOC and many more and EPCS including L&T, NCC, Doosan and many more.

With India poised to be the fastest developing country, the management expects expansion and investments in core sectors like steel, cement, coal, water, irrigation, hydrocarbon, electric mobility, renewable energy including solar and banking in the country. KECL caters its products to all these sectors and this growth is expected to have its impact on the increased demand for electric manufactured goods of the company, the company said.

KECL is one of the foremost manufacturers of Motors for Electric vehicles. India is well poised to register multifold growth in the electric mobility space. As per various surveys, the number of electrical vehicles on the road will grow from 3 million to 125 million by 2030. Huge growth is expected for electrical vehicles in India which will see an increase in demand for Motors, the company said in its FY23 annual report.

Meanwhile, KECL in December 2023 quarter results note said that the net worth (after excluding revaluation reserve) of the group in terms of the consolidated financial statements as at December 31, 2023 consisting of the company, its subsidiaries and its associate was eroded.

The company has repaid all term loans which were restructured under the Joint Lender Forum (JLF) mechanism. Also the company is in an advanced stage of negotiation for monetization/disposal of assets which will improve the working capital and in turn improve the performance in the forthcoming periods. The company is confident that this funding will have a positive impact on the performance and net worth, KECL had said.