SML ISUZU Small-cap auto stock hits back-to-back 52-week high

During Friday’s deals, the shares of SML ISUZU Limited touched a 20% upper circuit of Rs 2,098 apiece on BSE. Furthermore, the scrip witnessed a massive spurt in volume by more than 5.17 times. The company’s current market capitalisation is Rs 3,036.15 crore.

In recent days, the stock of SML ISUZU Ltd has been on an impressive streak, consistently reaching new 52-week highs. The market has witnessed substantial buying activity in this auto stock, indicative of strong investor confidence and interest.

Over the course of just one week, the stock has surged by an impressive 26.51%, reflecting a remarkable upward momentum. This remarkable performance underscores the growing appeal and positive sentiment surrounding SML ISUZU Ltd, positioning it as a notable player in the automotive sector with significant potential for further growth.

About company

SML ISUZU Ltd, formerly known as Swaraj Vehicles Ltd, was established in 1983 with support from Punjab Tractors Ltd, in collaboration with Mazda Motor Corporation, Japan, and Sumitomo Corporation, Japan. The collaboration aimed to bring advanced automotive technology to India’s market.

However, in 2004, the technical collaboration agreement with Mazda came to an end, leading to the sale of Punjab Tractors Ltd’s entire stake to Sumitomo Corporation. Concurrently, SML ISUZU Ltd entered into a new technical assistance agreement with Isuzu Motors, marking a strategic shift in its partnership and technology direction.

Product-wise and segment-wise breakdown

The product-wise breakdown of SML ISUZU’s sales reveals that buses account for approximately 64 per cent of the total value, while truck and bus sales contribute to around 27 per cent. Other product categories represent the remaining 9 per cent of the company’s sales.

The segment-wise breakdown of the company’s operations reveals that automobiles constitute the majority, accounting for approximately 91.31% of the total value. Meanwhile, auto-ancillary products represent around 8.69 per cent of the company’s business.

Geographical distribution:

In terms of geographical distribution, the company’s focus remains primarily on the domestic market, with India contributing approximately 91.98% of the total value. The rest of the world, encompassing other international markets, accounts for the remaining 8.02% of SML ISUZU’s business.

Insights on the Promoter:

The company is promoted by Sumitomo Corporation, which holds a substantial ownership stake of 43.96 per cent.

Sumitomo Corporation, founded in 1919 and headquartered in Tokyo, Japan, is a leading sogo shosha, or general trading company. It operates diverse businesses spanning multiple sectors.

In the metals industry, Sumitomo is a major player, in trading and processing various metals like iron ore, steel, and copper. The company also owns media and entertainment assets, including television stations, film studios, and music labels. Furthermore, Sumitomo is involved in chemical manufacturing, real estate development, and energy exploration and production, including renewable energy sources.

Publicly traded on the Tokyo Stock Exchange, Sumitomo is a significant component of the Nikkei 225 stock index.

Furthermore, the stock has witnessed significant buying activity as it has given returns of more than 202% in the last 1 year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.