The shares of SML Isuzu Limited declined by 2.2 per cent and closed at Rs 784 in Friday’s trading session. In the past five days, the stock has gained more than 3 per cent and in a month it has jumped by approximately 15 per cent.
The stock reached its 52-week high of Rs 848.90 in November last year. Currently, it is trading at a 5 per cent discount from those levels.
Sachin Bansal, the founder of Flipkart, holds approximately 13.13 per cent stake in the company. While the promoters holding in the company stands at 54.39 per cent with zero shares pledged.
In Q1FY23, their total revenue stood at Rs 500 crores which is an increase of 405 percent from Rs 99 crores which they earned in the same quarter a year earlier. In fact, the revenue has been increasing for the last five quarters.
The sales of the company were majorly affected in FY21 as the pandemic led to restrictions in movement which ultimately reduced the demand for these vehicles. However, the company is seeing a strong rebound in their sales as they have sold 5,533 units in just the first five months of FY23 as compared to 7,392 units which they were able to sell in FY22.
In the quarter under review, their net profit stood at Rs 2 crores as against a loss of Rs 33 crores which it incurred in Q1FY22. The company has been able to narrow its losses for the last five quarters.
SML Isuzu Limited (SMLI) is a commercial vehicle manufacturer which produces and sells buses, ambulances and customised vehicles. The company has an 8 per cent market share in the Domestic School Bus segment and a 15 per cent market share in the Passenger Carrier segment.
With all the improvement in its financials and a rise in the demand for its product, the company seems to be coming back on track and might have the potential to reach new heights in the coming time to give exponential returns.
Written by Anoushka Roy
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
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