NDR Auto Components, an auto ancillary company, has experienced a remarkable surge in its share price, recording an year-to-date increase of 40.55%. During this period, the stock surged from ₹592 apiece to the present level of ₹832.
In recent May, the stock zoomed 50.50% to reach an all-time high of ₹888.80 apiece and it has rallied 177% from its 52-week low of ₹300. This recent rally in the stock has resulted in an impressive return of nearly 300% over the last two-year period.
The company operates in the auto components industry and is engaged in the production and manufacturing of seat frames and seat trims for four-wheeler and two-wheeler vehicles and other accessories relating to car seats. It has key customers like Bharat Seats Ltd., Toyota Boshoku, Suzuki Motorcycles, Bellsonica, and Toyota Kirloskar Motor.
The company's shares got listed in July 2020. Since its listing, the shares have demonstrated a consistent upward momentum, delivering positive returns year after year. In the previous year (CY22), it delivered a solid return of 52%, and in the year before that, it recorded a stellar rally of 67.14%. In CY20, it rewarded shareholders with 110% gains.
On the fundamental front, the company reported its highest-ever quarterly consolidated net profit of ₹9.96 crore in Q4FY23. It had achieved a net profit of ₹6.07 crore in the same period of last year and ₹5.68 crore in the preceding December quarter.
During the quarter, the consolidated revenue from operations soared to ₹130 crore, a jump of 64% YoY from ₹80 crore in Q4FY22, on account of the strong demand from the automotive industry.
On the operating performance front, EBITDA increased to ₹13.64 crore from ₹5.59 crore in Q4 FY22, while the EBITDA margin expanded by 114 basis points to 8.33%. The earnings per share also improved significantly to ₹16.75 from ₹10.21 in Q4FY22.
Furthermore, it is worth noting that the company is debt-free and exhibited a remarkable Return on Equity (RoE) of 12.56% in FY23, marking a substantial increase from 7.19% in FY22.
Additionally, its Return on Capital Employed (RoCE) stood at an impressive 15% in FY23, compared to 9.15% in the previous fiscal year, Trendlyne data showed.
Looking ahead, the company is optimistic about the future, expecting a continued strong demand for automobiles driven by increasing per capita income. The ongoing improvements in road infrastructure and national connectivity are expected to contribute to the growth of the automobile sector.
In addition, the recently implemented vehicle scrappage policy of 2021 is anticipated to further stimulate the demand for automobiles, it added.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
