Shares of Precision Camshafts Ltd rose sharply after ace investor Vijay Kedia picked a stake in it. The company’s shares appreciated 16.74% on Tuesday to reach an intraday high of ₹ 149.20 apiece. At 12:00 PM, the shares were trading at ₹ 144.25, up 12.87%.
Precision Camshafts is an auto ancillary company that manufactures and supplies camshafts in India and globally. These camshafts are supplied for passenger vehicles, tractors, light commercial vehicles and locomotive engine applications.
The company’s shares closed at ₹ 107.00 apiece last week and gained 39.44% in the past two days to reach a high of ₹ 149.20 apiece on Tuesday. In fact, its share price climbed a whopping 67.45% in the past month, rising from ₹ 89.10 apiece.
According to the latest shareholding pattern of the company, Vijay Kedia has bought 10 lakh shares or a 1.05% stake in it. His name was missing from the list of shareholders who hold more than 1% stake in the December quarter of 2022. His holdings in the company are worth ~ ₹ 14.42 crores.
Precision Camshafts is a small-cap company with a market capitalization of ₹ 1,214 crores. It has a low return on equity of 6.95% and an ideal debt-to-equity ratio of 0.17. Moreover, it has a dividend yield of 0.86%. Further, its shares were trading at a price-to-earnings ratio of 28.88, which is significantly lower than the industry P/E ratio of 42.06, indicating that the stock might be undervalued as compared to its peers.
The auto-ancillary company on a consolidated basis reported revenue of ₹ 277.88 crores in the December quarter of 2022, indicating an increase of 13.87% as compared to ₹ 277.88 crores reported in the corresponding quarter last year. It posted a profit of ₹ 17.80 crores in the December quarter, against ₹ 12.96 crores in the same quarter last year.
Written by Simran Bafna
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