 "Indo Tech Transformers zooms over 50% in four days")
Shares of Indo Tech Transformers (ITL) have surged 16% to Rs 275, extending its past three days rally of over 30% on the National Stock Exchange (NSE) on the back of heavy volumes.
The stock hit a 52-week high of Rs 282 in the intra-day trade on the NSE. It zoomed 55% from Rs 178 since December 30, 2015 as against a 1.3% fall in the Nifty50 index.
The trading volumes on the counter more than doubled and a combined 615,850 shares changed hands on the NSE and BSE till 01:50 pm.
The company engaged in transformer business had posted earnings before interest, taxes, depreciation and amortization (EBITDA) loss of Rs 3.44 crore on revenues of Rs 53.90 crore for the second quarter ended September 2015.
The rating agency India Ratings & Research (Ind-Ra) expects the company to return to profitable operations in FY17.
Although ITL reported EBITDA losses for the sixth year in succession in FY15, a turnaround is evident from growing revenue and shrinking EBITDA losses.
The stock hit a 52-week high of Rs 282 in the intra-day trade on the NSE. It zoomed 55% from Rs 178 since December 30, 2015 as against a 1.3% fall in the Nifty50 index.
The trading volumes on the counter more than doubled and a combined 615,850 shares changed hands on the NSE and BSE till 01:50 pm.
The company engaged in transformer business had posted earnings before interest, taxes, depreciation and amortization (EBITDA) loss of Rs 3.44 crore on revenues of Rs 53.90 crore for the second quarter ended September 2015.
The rating agency India Ratings & Research (Ind-Ra) expects the company to return to profitable operations in FY17.
Although ITL reported EBITDA losses for the sixth year in succession in FY15, a turnaround is evident from growing revenue and shrinking EBITDA losses.
“The improved operational performance is attributed to an improvement in realisations and operational efficiency. A sustained improvement in operations leading to ITL reporting positive EBITDA depends largely on ITL’s ability to secure significant high-margin export orders. The company, with the support of GE, is likely to receive significant export orders over the next six months,” Ind-Ra said in a press release dated October 27, 2015.