Dark horse stock of the day: Universal Autofoundry surges 20% today

Shares of Universal Autofoundry witnessed a significant surge today. The stock commenced trading at Rs 170.25, marking a 5.6% increase compared to the previous day’s closing price of Rs 161.20. During the intraday session, the stock exhibited a remarkable 20% surge accompanied by significant trading volume. 

Upon scrutinising today’s share volumes, it becomes apparent that there has been a substantial increase of over 94 times in trading volumes compared to its average volumes on the BSE. As of writing this article the shares of the company are up by Rs 32.20 or 19.98% and are trading at Rs 193.40 each on the BSE. 

The stock’s 52-week high and low are Rs 193.40 and Rs 84.55, respectively. Possessing a market capitalisation of Rs 234 crore, the stock has showcased outstanding performance in recent periods, yielding a remarkable 40% return in the last month and an impressive 733% return in the past three years. 

Below are the daily trading and delivery volumes of the shares in both NSE and BSE:

Financial Performance    

In the June quarter of FY24, the Company’s revenue from operations experienced a decline of 5.90% YoY, going from Rs 61.17 crore to Rs 57.56 crore. The operating profit of the company fell from Rs 7.13 crore to Rs 6.96 crore and on a sequential basis it increased significantly from Rs 5.05 crore to Rs 6.96 crore, the operating profit stood at 12%.   

Whereas the net profit of the company amounts to Rs 3.56 crore, the net profit margins stood at 6.2% in Q1 FY24. 

The company’s return on capital employed (ROCE) and return on equity (ROE) are at 21% and 26%, respectively. The Book value of the company is Rs 48 which means the stock is trading at Price to price-to-book value of 4.2 times in the market, whereas the price-to-earnings ratio is 22 times.   

Business Overview 

Universal Autofoundry Ltd., incorporated in the year 2009, operates in the Industrial Consumables sector. It is headquartered in Jaipur, India, and specializes in manufacturing casting components in Grey Iron and S.G. (Ductile) Iron. The company supplies castings in Machined, Semi-Machined, and as-cast conditions, with surface treatments tailored to customers’ needs. Suspension brackets, differential housings, hubs, etc., are among the items that find applications in the commercial vehicle and engineering industry. 

Here is the chart presentation of the company’s shares on the daily time frame:

Disclaimer: This blog has been written exclusively for educational purposes. The securities 9mentioned 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.