Remsons Industries Surges 5% After Promoter Increases Stake—Here’s Why Investors Are Excited!
Stock Jumps as Promoter Buys More Shares
Shares of Remsons Industries Limited, a microcap auto ancillary company, surged nearly 5% in Tuesday’s trading session after its promoter increased his stake. The stock hit an intraday high of ₹120.99, reflecting a 4.92% increase before settling at ₹119.25, up 3.4% from the previous close of ₹115.3.
The company, which manufactures automotive control cables, flexible shafts, gear shift systems, push-pull cables, and other essential vehicle components, has been a multi-bagger stock, delivering a staggering 204.6% return over the last three years and a whopping 974.3% return in five years.
What Triggered the Rally?
The stock rally was fueled by insider buying activity. On March 17, 2025, Mr. Chand Krishna Kejriwal, Whole-Time Director and Promoter of Remsons Industries, purchased 10,000 equity shares worth ₹11.54 lakh, increasing his stake from 25.61% to 25.64%.
This follows his earlier purchase on March 13, 2025, where he acquired another 10,000 shares for ₹12.28 lakh. Such consistent buying by promoters is often viewed as a positive signal, indicating confidence in the company’s future growth potential.
Financial Performance – Solid Growth Across the Board
Remsons Industries has demonstrated strong financial growth, with revenues and profits rising significantly in the past year.
| Financial Metrics | Q3FY24 | Q3FY25 | YoY Growth |
|---|---|---|---|
| Revenue from Operations | ₹82.2 Cr. | ₹103 Cr. | +25% |
| Net Profit | ₹3.4 Cr. | ₹5 Cr. | +18% |
| EBITDA | ₹8.4 Cr. | ₹12.4 Cr. | +47% |
With steady revenue growth and improved profitability, the company is well-positioned for future expansion.
Future Outlook – Expansion & Diversification on the Horizon
Looking ahead, Remsons Industries has ambitious growth plans. The company intends to invest ₹100 crore in capital expenditure over the next three years.
Key Strategic Initiatives:
- Targeting a 20% revenue CAGR, aiming to reach ₹900-1000 crore in revenue by FY29.
- Exploring joint ventures, collaborations, and acquisitions to accelerate growth.
- Expanding its product portfolio to align with the rising EV market demand and remain EV-agnostic.
With these initiatives, Remsons is poised to strengthen its market presence and capitalize on the growing automotive industry.
Key Clients & Partnerships – A Strong Market Presence
Remsons Industries supplies components to leading automobile manufacturers, including:
✅ TATA Motors
✅ Land Rover
✅ Maruti Suzuki
✅ Jaguar
✅ FIAT
✅ Ford
✅ BMW
✅ Force Motors
✅ Ashok Leyland
✅ Mahindra & Mahindra
✅ TVS Motors
✅ Hero MotoCorp
These partnerships provide stable revenue streams and growth opportunities in both domestic and international markets.
Stock Valuation & Financial Ratios
Here’s how Remsons Industries stacks up in terms of key financial metrics:
| Metric | Value |
|---|---|
| Market Cap | ₹408 Cr. |
| Current Price | ₹117 |
| 52-Week High/Low | ₹235 / ₹103 |
| Stock P/E | 28.0 |
| Book Value | ₹33.6 |
| Dividend Yield | 0.26% |
| ROCE (Return on Capital Employed) | 15.4% |
| ROE (Return on Equity) | 17.7% |
| Debt-to-Equity Ratio | 0.70 |
| Pledged Percentage | 0.00% |
| Industry P/E | 24.7 |
| Intrinsic Value | ₹59.5 |
| EPS (Earnings Per Share) | ₹4.29 |
| Price-to-Sales Ratio | 1.16 |
| Debt | ₹82.6 Cr. |
| Free Cash Flow (3 Years) | ₹23.5 Cr. |
Should You Invest in Remsons Industries?
With strong financial performance, promoter confidence, and expansion plans, Remsons Industries appears to be a promising auto ancillary stock.
Reasons to Consider Investing:
✔ Steady Revenue & Profit Growth – Strong YoY financials with robust earnings potential.
✔ Promoter Buying – A sign of confidence from top management.
✔ Expansion Plans – ₹100 Cr. capex and EV-agnostic strategy.
✔ Strong Client Base – Supplying leading automobile giants.
✔ Multi-Bagger Returns – A 974.3% return over five years indicates potential for further upside.
Potential Risks:
❌ Market Volatility – Small-cap stocks can be highly volatile.
❌ Debt Levels – The company has ₹82.6 Cr. in debt, requiring efficient management.
Frequently Asked Questions (FAQs)
1. Why did Remsons Industries stock rise by nearly 5%?
The stock surged as promoter Chand Krishna Kejriwal increased his stake in the company, signaling confidence in future growth.
2. How has the stock performed historically?
Remsons Industries has delivered 204.6% returns in three years and a 974.3% return over five years, making it a multi-bagger stock.
3. What are the company’s future growth plans?
The company plans to invest ₹100 Cr. in capex, aiming for ₹900-1000 Cr. in revenue by FY29. It is also expanding into EV-agnostic products.
4. What financial metrics indicate the company’s growth potential?
Key metrics include a 25% YoY revenue increase, 47% EBITDA growth, and an ROE of 17.7%, indicating strong profitability.
5. Who are the major clients of Remsons Industries?
The company supplies components to TATA, Land Rover, Maruti Suzuki, BMW, Ford, Mahindra, TVS, Hero, and more.
6. Should investors consider buying Remsons Industries stock?
With strong growth, promoter confidence, and expansion plans, the stock could be a good investment, but potential investors should consider market volatility and debt levels before making a decision.
Final Thoughts
Remsons Industries Limited is showing solid growth potential backed by strong financials, promoter buying, and ambitious expansion plans. As the company gears up for long-term growth in the auto sector, it remains a stock to watch for investors seeking opportunities in the auto ancillary space.
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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.