This automobile stock has zoomed over 100% in 11 days | News on Markets

May 2, 2024

29 2 minutes read

Till 02:22 PM, as many as 17.07 million equity shares, representing 8.2 per cent of total equity of Hindustan Motors, had changed hands on the NSE and BSE

Deepak Korgaonkar Mumbai

Shares of Hindustan Motors were locked in the 10 per cent upper circuit for a third straight day, at Rs 38.19 on the BSE, in Thursday’s intraday trade. Till 02:22 PM, as many as 17.07 million equity shares, representing 8.2 per cent of total equity of Hindustan Motors, had changed hands on the NSE and BSE. Besides, there were pending buy orders for a combined 2.1 million shares on the exchanges, data shows.

In the past 11 trading days, the stock price of the automobile company has more than doubled, zooming 111 per cent from a level of Rs 18.06 hit on April 15, 2024. The stock is trading at its highest level since May 2008. It had hit a record high of Rs 111.28 on April 8, 1992.

Click here to follow our WhatsApp channel

According to Hindustan Motors, the movement in the share price of the company or spurt in volume in shares of the company is purely based on market sentiments and the company has no inputs/comments in this regard as the company is in no way connected with any such movement in price.

Earlier on April 24, Hindustan Motors said there is no pending information or announcements which have a bearing on price movement in the shares of the company.

“Please be informed that there are more than one lakh shareholders in the company, and the movement in price or spurt in volume of trading in shares of the company is purely a market driven one and the company or its promoters or any key managerial personnel has nothing to do with it,” the company said.

Further, the company’s RTA and Promoters/ Promoters group have been informed that they have not purchased/sold any shares in the last 6 months.

As on March 31, 2024, promoters held a 32.34 per cent stake in Hindustan Motors. Individual shareholders held 58.86 per cent stake in the company, the shareholding pattern data shows.

Hindustan Motors is primarily engaged in manufacture and sale of vehicles, spare parts of vehicles, steel products and components. The company is also engaged in trading of spare parts of vehicles.

Hindustan Motors, in its financial year 2022-23 (FY23) annual report, said that the management is putting continuous effort in scouting for tie-ups and potential investment/strategic partners who can introduce new products and infuse capital in the company. The company is considering various measures including alternative use of Fixed Assets to generate revenue.

The company has entered into a Memorandum of Understanding (MoU) to extend the Electric Vehicle (EV) domain across the border to enhance the production of eco-friendly electric vehicles. However, the project is stalled at the moment due to a Notice from Government of West Bengal on resumption of Uttarpara Land.

The company has alternate plans to facilitate and generate additional revenue and realize adequate funds required, after the resumption issue is resolved.

Meanwhile, due to low productivity, growing indiscipline, shortage of funds, and lack of demand for products, the management declared “Suspension of work” at company’s Uttarpara Plant with effect from May 24, 2014.