Concord Control Systems hits 52-week high on planning to acquire 50% stake of Concord Lab

At 3 pm, Concord Control Systems shares were trading at Rs 681.00, up by 3.50% from its previous closing of Rs 658 on the BSE.

Concord Control Systems has planned to make an investment to acquire 50% Equity Shares of Concord Lab to Market Innovations on its incorporation. With the proposed acquisition, the target company shall become an Associate Company of Concord Control Systems. This shall enable the Company to explore new opportunities and diversify new areas in railways and locomotives. The proposed Investment aims to create synergistic relationships and growth. The transaction is expected to be completed within two months.

The company also announced its financial results for the quarter ended September 30, 2023, with net profit rising 96.05% to Rs 84.48 crore compared to Rs 43.09 crore from the previous year’s corresponding quarter. Revenue rose by 44.94% YoY to Rs 732 crore from Rs 181 crore.

Incorporated in 2011, Concord Control Systems is engaged in the business of manufacturing and supply of coach-related and electrification products for Indian Railways and other Railway Contractors.  The company has two manufacturing units situated in Lucknow, Uttar Pradesh. The company also has a research and development team dedicated to developing new products or improving existing products. Its R&D capabilities include product engineering, product simulation, prototyping and testing which are mainly undertaken at our manufacturing facilities.

The stock has gained over 250% in a year, over 210% on a year-to-date (YTD) basis and around 135% in the past six months.

On Thursday, the stock opened at Rs 718.90 and touched a high and low of Rs 718.90 and Rs 670, respectively. The BSE group ‘M’ stock of face value of Rs 10 has touched a 52-week high and low of Rs 718.90 and Rs 174, respectively.

Last one week high and low of the scrip stood at Rs 718.90 and Rs 615.30 respectively. The current market cap of the company is Rs 388.99 crore.

The promoters holding in the company stood at 73.53%, while Institutions and Non-Institutions held 2.21% and 24.26% respectively.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.