This Vijay Kedia stock zooms 10% after CARE revises credit ratings

Shares of Talbros Automotive Components, part of ace investor Vijay Kedia's portfolio, hit the upper circuit of 10 per cent today after CARE Ratings revised the credit rating on the bank facilities and fixed deposits of the company.

Talbros Automotive Components share opened with a gain of 3.2 per cent at Rs 500 today. The stock touched an intraday high of Rs 532.95, rising 10 per cent on BSE.

The microcap stock has gained 17.14 per cent in the last four days.

Talbros Automotive share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has gained 141.37 per cent in one year and risen 34.48 per cent since the beginning of this year.

Total 0.11 lakh shares of the firm changed hands amounting to a turnover of Rs 54.71 lakh on BSE. Market cap of the firm rose to Rs 657.96 crore on BSE.

The stock hit a 52-week high of Rs 654.90 on January 18, 2022 and a 52-week low of Rs 193.05 on April 23, 2021. The short-term bank facilities of the auto ancillary firm worth Rs 45 crore have been assigned a 'CARE A2+' rating from the existing 'CARE A1'.

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While company's fixed deposits worth Rs 1.48 crore are rated 'CARE A-/Stable' from the existing 'CARE A'. The revision in the ratings assigned to the bank facilities has been attributed to the improved operational performance of the group during FY21 (refers to the period from April to March) and the current year backed by healthy demand dynamics, particularly Q3FY21 onwards leading to increased volumes including exports along with better profitability margins.

Famous investor Vijay Kedia held 2.27 per cent stake or 2.8 lakh shares in the firm at the end of March quarter. Another ace investor Dolly Khanna owned 1.13 per cent stake in the firm in the March 2022 quarter. Khanna held 2,11,120 equity shares or 1.71 per cent stake in the December 2021 quarter. She has reduced her stake by 0.6 per cent during the period.

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The firm reported a net profit of Rs 11.20 crore, up 6.16 per cent for the quarter ended December 31, 2021 against profit of Rs 10.55 crore in the corresponding quarter of the previous fiscal. The company's December-quarter sales increased 14.55 per cent to Rs 148.36 crore in Q3 of last fiscal against Rs 129.52 crore a year ago.

Talbros Automotive Components Limited is an India-based company that is primarily engaged in the manufacturing of automotive components. The company offers a range of products, including multi-layer steel gasket, exhaust manifold gasket, rubber molded gasket, cylinder head gasket, gasket with electrical controls, edge molded gasket and heat shield. It also offers a range of products, including kingpins, gear blanks, housing and yoke shafts, power transmission parts for hybrid and electric drive, and vehicle structural parts.

Meanwhile, Sensex tanked 600 points to 59,575 and Nifty lost 158 points to 17,999 in the afternoon session.