Punjab Tractors up on Sumitomo deal buzz

DALAL STREET SPIKES

Punjab Tractors was in the limelight attracting renewed buying on reports that that it intends to sell a part of its stake in commercial vehicle maker Swaraj Mazda to Japan's Sumitomo Corporation.

Punjab Tractors is a joint venture partner with Sumitomo in Swaraj Mazda. The stock as a results spurted to a intra-day high of Rs 210.95 before closing at Rs 205.10, up 8.32 per cent. More than 4.57 lakh shares changed hands at the counter on BSE alone.

In addition to this, the company announced impressive December quarter results. The tractor major, posted a 55.5 per cent jump in net profits to Rs 21 crore as against Rs 13.5 crore in the same quarter last year.

Analysts said, Punjab Tractor can rake in a good amount by offloading part of its stake in Swaraj Mazda to Sumitomo Corporation, its joint venture partner.