Volumes at the bourse surged to more than 50,000 shares on Friday compared to less than 10,000 on the previous day. Amtec is engaged in manufacturing auto ancillary products for supply to US auto majors. It has two manufacturing plants in Elgin, Illinois, near Chicago.
The acquisition continues the recent trend of Indian auto ancillary companies undertaking foreign acquisitions to tap the overseas markets. In the last few months, Bharat Forge and the Amtek Group made foreign acquisitions.
Though Ucal Fuel had announced its intentions last week itself, the stock had largely remained rangebound between Rs 168 and Rs 173. The stock was trading above Rs 200 levels in October, 2004, but came off those highs after the company's financials failed to cheer the markets in the past two quarters.
Ucal Fuel, which used to manufacture carburettors for the passenger cars of Maruti Udyog, now produces them for two-wheelers as well. The company has a technical and financial collaboration with Mikuni Corporation, Japan, which has a 26 per cent stake in it.
For Q3, Ucal reported a 4.5 per cent drop in net profit to Rs 8.46 crore, though net sales rose 2.3 per cent to Rs 67.67 crore. The stock remains a market outperformer and can see upsides up to Rs 225-240.
Among mutual funds Sundaram SMILE fund has added the scrip to its portfolio, while Franklin India Prima and JM Auto sector fund have increased their exposure to the stock in the past month.
