This small-cap auto company receives orders worth Rs 539 crore from Mahindra Group of Companies; share jumps 13 per cent!
The shares of the company saw a spurt in volume by more than 2.54 times on BSE.
On Friday, one of the Top Gainers on BSE, shares of Divgi Torqtransfer Systems surged 13.78 per cent to an intraday high of Rs 905 per share. At the closing bell, shares of the company were trading at Rs 892.50 per share, up 12.21 per cent with a spurt in volume by more than 2.54 times on BSE.
Divgi Torqtransfer Systems Ltd informed the exchanges (BSE Scrip Code: 543812; NSE Scrip Code: DIVGIITTS) that the company has received new orders worth Rs 539 crore from Mahindra Group of Companies.
Order No – 1: Supply of 4WD solutions and manual transmission components wherein the life cycle revenue of 4WD solutions is Rs 210 crore and the life cycle revenue of manual transmission components is Rs 110 crore. The order is worth Rs 320 crore and the expected programme life is 5 years.
Order No – 2: Supply of product for EV model with a life cycle revenue of Rs 219 crore. The expected programme life is 5 years.
Divgi Torqtransfer system is one of the leading players supplying transfer case systems to automotive OEMs and the largest supplier of transfer case systems to passenger vehicle manufacturers in India.
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Talking about the financials, Divgi Torqtransfer Systems has a market cap of Rs 2,710 crore. The company reported amazing numbers in its Quarterly Results and annual results. The net sales increased by 25.86 per cent to Rs 73 crore and net profit increased by 8.33 per cent to Rs 13 crore in Q4FY23 over Q4FY22.
In FY23, the net sales increased by 15.81 per cent to Rs 271 crore and net profit increased by 10.87 per cent to Rs 51 crore over FY22. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.