Shares of Pricol gave up all of their early gains in Friday’s trade after issuing a clarification on Minda Corporation’s proposed acquisition. The stock climbed 5.14 per cent to hit a day high of Rs 219 over its previous close of Rs 208.30. In late morning deals, the scrip slipped 5.59 per cent to hit a day low of Rs 196.65. At today’s low price of Rs 196.65, Pricol declined 10.21 per cent from its day’s high level of Rs 219.
Around 80.13 lakh shares changed hands today on BSE, which was more than 13 times higher compared to Pricol’s two-week average volume of 61,000 shares. Turnover on the counter stood at Rs 167.38 crore, commanding a market capitalisation (m-cap) of Rs 2,430.93 crore.
On similar lines, Minda Corp also fell 1.61 per cent today, shedding their early gains.
Pricol, in an exchange filing, issued a clarification on a report of Minda Corp’s proposed equity acquisition in the company. It said, “It has come to our attention, that Minda Corp intends to acquire a 15.7 per cent stake in Pricol. The promoters have absolutely no intent of undertaking any secondary sale of promoter stake nor does the company have any intent to raising equity capital of any form as the company has strong financial fundamentals and healthy cash profits that will meet the needs of capital for its future growth.”
The automotive components & precision-engineered products manufacturer also mentioned that the promotors have turned around the company in the last few years by making it net debt free. “We continue to invest significantly in both product and process technology to keep us ahead of competition,” it added.
Pricol further stated, “The promoters and the management stand committed to its stakeholders and are bullish about the growth prospects of the organisation combined with a firm financial footing.”
The stock was last seen trading higher than 20-day, 50-, 100- and 200-day moving averages but lower than 5-day moving averages. The counter’s 14-day relative strength index (RSI) came at 51.21. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 25.
Pricol has an average target price of Rs 168.33, Trendlyne data showed, suggesting a potential downside of 15.67 per cent. The scrip has a one-year beta of 1.54, indicating high volatility.
Meanwhile, Indian equity benchmarks slipped in early trade today, dragged by banks, financials, technology and pharma stocks. As of 11:40 am, the 30-share BSE Sensex pack fell 198 points or 0.32 per cent to trade at 61,121; while the broader NSE Nifty index moved 54 points or 0.30 per cent lower to trade at 17,982.
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