This Auto component stock, which is into manufactures and supplies engine cooling systems and modules for industrial and automotive applications soared 19 percent after the company reported a net profit increase of 110% and bonus share approval.
Price Movement
In Thursday’s trading session, Banco Products Limited stock was up by 19 percent in the day’s trade after the company reported a net profit increase of 110 percent. The stock has delivered a return of around 41 percent in the past year outperforming the Nifty Index in the same period. The stock reiterated from the day’s high of Rs. 839.95 and was trading at Rs. 834.95 which is 19.28 percent from the previous closing price of Rs. 700 per share.
What happened
Such a bullish movement in the scrip price was a result of an earnings update released by the company. The company posted a significant jump in net profits and a jump in revenue in Q2FY25.
According to its recent filing, In Q2FY25, Banco Products Ltd reported a 23 percent increase in revenue to Rs.895 crore in Q2FY25, compared to Rs.725 crore in Q2FY24. Furthermore, quarterly, the company saw an increase of 11.31 percent in revenue from Rs.804 crore in Q1FY25.
In the same period, the company reported a significant increase in net profit of 110 percent to Rs.139 crore in Q2FY25, up from Rs.66 crore in Q2FY24 and a 101 percent increase from Rs.69 crore in Q1FY25.
In terms of return ratios, return on capital employed (ROCE) is currently at 26.23 percent, while return on equity (ROE) is at 26.45 percent. The company has a strong current ratio of 3.54 and a debt-to-equity ratio of 0.41.
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Bonus Issue
The company has announced bonus shares for the shareholders in the ratio of 1:1. The Pre-bonus issue paid-up share capital currently has 7,15,18,650 equity shares of Rs. 2 each totalling Rs. 14.30 Crore. This would change after the bonus issue reflecting 14,30,37,300 equity shares of Rs. 2 each totalling Rs. 28.61 Crore.
Revenue Segment
According to the company’s quarterly September 2024 report, they considered revenue from the Automobile Ancillary business as of Q2FY25.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a major share of 67.88 percent stake in Banco Products, Foreign Institutional Investors (FII) holding around 3.08 percent, Domestic Institutional investors (DII) standing at 0.18 percent, and public holdings standing at 28.86 percent.
About the company
Banco Products (India) Limited, established in 1961, specializes in engine cooling and sealing systems for both automotive and industrial applications. The company offers a diverse range of products including radiators, oil coolers, and gaskets, catering to sectors such as passenger vehicles, commercial trucks, and agricultural machinery.
Banco focuses on innovation and quality, utilizing advanced R&D facilities to develop customized solutions that meet varying customer needs. With a strong market presence, both domestically and internationally, Banco is recognized as a key player in the automotive components industry, focusing on sustainable practices and efficient supply chain management.
Written by Santhosh S
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