Rane Brake Lining has touched a fresh high of Rs 1,225, up 19% on the BSE on Monday, on the back of heavy volumes in an otherwise weak market.
The trading volumes on the counter jumped more than two-fold with a combined 409,159 shares changed hands on the BSE and NSE till 02:57 pm. The S&P BSE Sensex was down 1.53% or 441 points at 28,356.
Since July 20, the stock of auto parts & equipment maker appreciated 157% from Rs 476 after the company's net profit more than doubled to Rs 10.49 crore in June 2016 quarter (Q1FY17), against Rs 4.82 crore in the same quarter year ago.
The company said, during the quarter it undertook various cost reduction initiatives resulting in favourable material cost and reduced operational cost. The company's better cash generation and internal accruals helped to repay long term loans and significantly reduce finance costs.
We are focusing on commencing supplies for new wins with Tier-I/OEM customers, which will provide impetus for growth in the upcoming quarter. Further we are expanding our range in the Aftermarket business, we are continuing to focus on operational efficiency to mitigate the headwinds in material and other operational cost, said L. Ganesh, Chairman, Rane Group.