Dark Horse Stock of the Day: PIX Transmissions Rallies Over 900% in 3 Years

The shares of Pix Transmissions Ltd experienced a sharp rise today, hitting the upper circuit. It began the day at Rs 1103.95, a mere 0.72% up compared to the previous day’s closing price of Rs 1006.65. The stock surged by 20% during the intraday session with significant volume. 

While writing this article, the shares of the company are up by Rs 201.30 and at Rs 1207.95. Moreover, it has touched a new 52-week high of Rs 1207.95 today. Upon analysing today’s share volumes, it can be observed that there has been a significant increase of more than 11.97 times in volumes on the BSE.

The stock’s 52-week highs and lows stand at Rs 1207.95 and Rs 703.95, respectively. With a market capitalisation of just Rs 1645.86 Crore, the stock has displayed positive performance in recent times, delivering a 30% return over the last month and an impressive 75% return in the last two years. Furthermore, it has given a multibagger return of 914% to investors in the last three years. 

Regarding ownership, the promoters of the company possess 61.82% of the company’s shares. Whereas stakes held by foreign institutional investors (FIIs) and domestic institutional investors (DIIs) are 0.21% and 0.41%, respectively. The remaining portion, which accounts for 37.57%, is owned by public investors. 

Financial Performance 

If we check the company’s financials, in FY23 annual revenue experienced a modest increase of 8.24% YoY, rising from Rs 449 Crore to Rs 486 Crore. The operating profit of the company stands at Rs 105 Crore, accompanied by an operating profit margin of 22%. Furthermore, the net profit of the company amounts to Rs 65 Crore. This month the company has announced a final dividend of Rs 6 per share which is 60% on its face value of Rs 10 each.

The company’s return on capital employed (ROCE) and return on equity (ROE) are in single digits at 19.5% and 16.6%, respectively. 

Business Overview

PIX Transmissions Limited is an Indian company that specialises in the production of belts and other mechanical power transmission products. It operates manufacturing units and an automated rubber mixing facility in Nagpur, India.

The company’s infrastructure includes a design centre, fabrication workshop, and comprehensive testing facilities. Additionally, it possesses an advanced production facility and an automated mixing plant. Apart from its presence in India, the company has subsidiary operations in Europe and the Middle East.

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.