Stock of this auto ancillary company has zoomed 40% in two days

Shares of Precision Camshafts (PCL) rallied 16 per cent to hit a 52-week high of Rs 149 on the BSE in Tuesday’s intra-day trade on heavy volumes. In the past two trading days, the stock of the auto ancillary company has zoomed 40 per cent as compared to a 1 per cent decline in the S&P BSE Sensex. In the past one month, the stock has surged 67 per cent. The stock had hit a record high of Rs 189.50 on February 8, 2022. At 02:18 pm; PCL was quoting 10 per cent higher at Rs 140.90 as against a 0.4 per cent fall in the benchmark index. The average trading volumes on the counter jumped over 10-fold today. A combined 7.1 million equity shares, representing 7.5 per cent of total equity of the company, changed hands on the NSE and BSE. Investor Vijay Kishanlal Kedia acquired nearly 1 million equity shares or 1.05 per cent stake in PCL during the January-March quarter (Q4FY23), the shareholding pattern data shows. Vijay Kedia held nil or below one per cent stake in the company at the end of December 2022 quarter, the data shows. PCL is primarily engaged in the manufacturing and sale of camshaft castings and machined camshafts to the auto industry and the railways. Its wholly owned subsidiary Memco Engineering Private Limited (MEMCO) is engaged in the business of manufacturing fuel injection components for conventional CRDi diesel engines, brake components, high pressure diesel injector connectors for naval ships and high precision instrumentation components. MEMCO enjoys long term relationships with marquee global customers like Bosch, Delphi, Endress Hauser and Giro. "In this changing and evolving business environment, the automotive camshafts market is poised to experience incremental growth in the future. With a strategic business plan aligned to our focus on the non-camshafts business and capturing a large market share in electric vehicle (EV), PCL is ready to reach new heights," the company has said.  PCL continues to be among the leading manufacturers of passenger vehicle camshafts in domestic and global market. The company is among the few companies globally to manufacture all the four types of camshafts, i.e. cast iron, ductile iron, hybrid and assembled. Camshaft is one of the critical components of an engine application in an automobile. PCL produces 150+ variants of camshafts, majorly used in passenger vehicles (PVs).