The shares of a micro-cap company which provides manufactures auto components like auto control cables, Gear shift systems, Flexible shafts, parking brake mechanisms, and push-pull cables went up 2 percent in intra-day trade. This surge in stock price is due to an acquisition of an automotive lighting design, development, and manufacturing company.
Share price movement
In Monday’s trading session, the shares of Remsons Industries Limited went up 1.6 percent in intra-day trade to Rs.197.80 per share, from its previous close of Rs.194.66 apiece. The share has retreated since then and is trading at Rs.190 apiece.
Rationale for Rise
Remsons Industries Limited acquired a 51 percent equity stake in BEE Lighting which is into automotive lighting design, manufacturing, and development. This acquisition is due to diversifying its product portfolio by entering into the segment of automotive lighting.
This expansion helps the company to tap the customer portfolio consisting of Luxury, Super, Hypercar, and EV marketplace.
Acquisition Objective
From this acquisition, Remsons can provide automotive lighting solutions from design to manufacturing. This enables the customers to have a broader range of high-quality offerings. This acquisition is expected to improve and benefit market reach, product development, and customer satisfaction.
Management Commentary
The Executive Director of Remsons, Rahul Kejriwal views the increased capabilities of the company “This acquisition enhances our product offering and allows us to enter the lighting market with the significant expertise and innovation. It is a step forward in delivering more comprehensive solutions to our customers.”
From the acquisition the founders of BEE Lighting Paul Crees and Colin Fulford said, “They are proud and excited about the future with Remsons. This partnership will allow us to reach new customers across the globe and further enhance product innovation.”
Also read…
Financial Performance
Remsons Industries Limited reported its financial results and in Q1FY25 revenue from operations was down by 5.5 percent quarter-on-quarter from Rs. 76.50 crore to Rs.81 crore in Q4FY24. Additionally, Profit After Tax (PAT) was down in Q1FY25 from Rs.2.68 crore to Rs. 5.15 crore in Q4FY24.
Company Profile
Remsons Industries Limited is into manufacturing of automotive parts and its products. The Company is an original equipment manufacturer that supplies its products in two, three, and four-wheelers category markets all over India and abroad. Their products include a combi-brake system (CBS), cables, push-pull cables, gear shift systems, jack kits, winches, pedal box assembly, and others. They are into cable manufacturing which includes clutch cable, parking brake cable, and others.
The company has eight manufacturing plants across India. Remsons exports its products to Brazil, the United States, Italy, the United Kingdom, Belgium, Spain, Singapore, and France.
Written by – Santhosh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
