Remsons Industries Jumps Over 6% as Promoters Increase Stake – What Investors Need to Know
Introduction
Shares of Remsons Industries Limited, a microcap auto ancillary company, surged 6.4% intraday on Thursday after its promoters increased their stake. The stock ended the session 5.3% higher at ₹130.44, up from the previous close of ₹123.9. This rally reflects investor confidence in the company’s growth potential, supported by strong financials and expansion plans.
Share Price Movement & Performance
Remsons Industries, with a market capitalization of ₹460 crore, saw its stock hit an intraday high of ₹131.8 before settling at ₹130.44. The stock has been a multi-bagger, delivering impressive returns of:
- 202% in the last three years
- 696% in the past five years
Why Did the Stock Surge?
The rally was triggered by significant promoter buying activity, signaling confidence in the company’s future.
Promoter Buying Details:
- Mr. Krishna Kejriwal (Chairman & MD)
- February 18, 2025: Bought 15,000 shares for ₹17.30 lakh, increasing his stake from 23.62% to 23.66%.
- February 19, 2025: Purchased 22,825 shares for ₹28.47 lakh, raising his holding to 23.73%.
- Mr. Rahul Kejriwal (Whole-Time Director)
- February 18, 2025: Acquired 45,000 shares worth ₹51.52 lakh, increasing his stake from 4.4% to 4.53%.
- February 19, 2025: Bought 2,175 shares for ₹2.74 lakh, maintaining a 4.53% stake.
Strong Financial Growth & Future Expansion
The company has showcased robust financial performance with significant revenue and profit growth.
Q3FY25 vs Q3FY24 Financial Performance:
| Financial Metric | Q3FY24 | Q3FY25 | YoY Growth (%) |
|---|---|---|---|
| Revenue | ₹82.2 Cr | ₹103 Cr | +25% |
| Net Profit | ₹3.4 Cr | ₹5 Cr | +18% |
| EBITDA | ₹8.4 Cr | ₹12.4 Cr | +47% |
Future Outlook: Expansion & Growth Plans
- The company plans to invest ₹100 crore in capital expenditure over the next three years.
- Targeting a Revenue CAGR of 20%, aiming to reach ₹9,000–10,000 crore by FY29.
- Strategic expansion through joint ventures, acquisitions, and collaborations.
- Focus on EV-agnostic product development to tap into the growing electric vehicle market.
Strategic Partnerships with Industry Giants
Remsons Industries has secured partnerships with leading automakers, including:
- TATA, Land Rover, Maruti Suzuki, Jaguar, FIAT, Ford, BMW, Mahindra, Ashok Leyland, TVS, Hero, and more.
Key Financial Ratios & Stock Metrics
| Metric | Value |
|---|---|
| Market Cap | ₹460 Cr |
| Current Price | ₹131 |
| 52-Week High/Low | ₹235 / ₹103 |
| Stock P/E | 31.5 |
| Book Value | ₹33.6 |
| Dividend Yield | 0.23% |
| ROCE | 15.4% |
| ROE | 17.7% |
| Promoter Holding | 65.3% |
| Debt-to-Equity | 0.70 |
| EPS | ₹4.29 |
| Industry P/E | 25.2 |
| Pledged Percentage | 0.00% |
| Intrinsic Value | ₹59.5 |
| Graham Number | ₹57.0 |
| RSI | 55.9 |
| DMA 200 | ₹157 |
| Free Cash Flow (3Yrs) | ₹23.5 Cr |
| QoQ Profit Growth | 58.2% |
| PEG Ratio | 1.1 |
About Remsons Industries Limited
Founded in 1971, Remsons Industries Limited is a leading auto ancillary company specializing in:
- Auto control cables
- Gear shift systems
- Push-pull cables
- Combi-brake systems
- Flexible shafts & winches
With a strong domestic and global presence, Remsons caters to OEMs and aftermarket players, making it a key player in the evolving auto component industry.
Conclusion: Is It a Good Buy?
With strong financial growth, strategic expansions, and promoter confidence, Remsons Industries is well-positioned for future gains. The company’s commitment to EV-agnostic technology, acquisitions, and long-term revenue growth makes it an attractive investment in the auto ancillary sector.
Investors should watch for further developments and consider their risk appetite before making investment decisions.
For more market insights, follow our news.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.