Endurance Technologies surged 11.03% to Rs 825 at 11:03 IST on BSE after the company withdrew plans to start the proposed tyre manufacturing business.
The announcement was made after trading hours yesterday, 8 August 2019.
Meanwhile, S&P BSE Sensex was up 352.83 points or 0.95% at 37,680.19.
On BSE, 54,000 shares were traded in Endurance Technologies counter, compared to a 2-week average of 18,000 shares. The stock hit an intraday high of Rs 869 and an intraday low of Rs 800.05. It hit a 52-week high of Rs 1,573.55 on 27 August 2018 and a 52-week low of Rs 743.05 on 8 August 2019.
On Thursday, Endurance Technologies reported its June quarter results in which it announced a proposed venture into manufacturing tyres for two and three wheelers. The company's filing stated that the board has approved acquisition of approximately 40 acre land in Aurangabad Industrial City (AURIC), Maharashtra. The investment for this project was slated as Rs 175 crore, which includes land and building cost, said the company.
The company late on Thursday clarified that while the management believed that the proposal for expansion into tyre manufacturing is appropriate strategy for the growth of the company, the investors expressed their reservations and requested the management to reconsider the same.
To the wishes of the important stakeholders' feedback, the management reconsidered the same and decided not to pursue the aforementioned project. Management has recommended to the board to the above effect.
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Endurance Technologies' consolidated net profit rose 32.9% to Rs 165.59 crore on a 2.6% increase in net sales to Rs 1,909.17 crore in Q1 June 2019 compared with Q1 June 2018. The result was declared during market hours yesterday, 8 August 2019.
Endurance Technologies is an automotive component manufacturer, having a range of technology intensified products with operations both in India and Europe (Italy and Germany). In India, it mainly caters to two and three wheeler OEMs and its products include aluminium castings, suspensions, transmission and braking systems. In Europe, it predominantly caters to four wheeler OEMs and mainly supply aluminium casting products.
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