Stock brokers react to movement share prices on BSE Sensex in Mumbai on January 23. Photo: Kamlesh Pednekar
Shares of Majestic Auto were trading at Rs 146 apiece, locked in upper circuit of 20 per cent for the second straight day on the BSE, after the company reported a consolidated net profit of Rs 19.21 crore in December 2018 quarter (Q3FY19). It had posted a loss of Rs 1.4 crore in year-ago quarter.
The consolidated revenue from operations jumped 2.5 times to Rs 35.78 crore during the quarter under review, against Rs 13.83 crore in previous year quarter.
In the past three trading days, the stock of Majestic Auto has zoomed 54 per cent from Rs 95.25 on Monday. In comparison, the S&P BSE Sensex was up 1.3 per cent during the same period.
The counter has seen huge trading volumes with 120,000 equity shares changed hands on the BSE till 11:37 am. On an average sub 10,000 shares were traded daily in past two weeks. There were pending buy orders for 86,132 shares, the exchange data shows.
Majestic Auto’s business primarily focuses on the development and lease of office space and its facility management. These two involves a series of activities like the acquisition of building/land, obtaining approvals, project planning from execution to launch, refurbishing, sales & marketing and finally leasing.
The company said that it has an objective of reducing the debt and the finance cost associated with it for attaining a good gearing ratio by reducing the cost and terming out the principal payments. Given the expected demand momentum, the company strongly believes that facility management business is riding on a high tide and the time is to reap benefits out of it.