Swaraj Engines has soared 11% to Rs 667, also its record high on the BSE, on back of heavy volumes on the bourses. The stock opened at Rs 615 and touched a low of Rs 610 in early morning deals on the BSE.
Till 1205 hours, a combined 43,700 shares have already changed hands as against an average less than 10,000 shares that were traded daily in past two weeks on the BSE and NSE.
Since October 21, the stock of auto parts and equipment maker has surged 34% post Q2 earnings compared to 1.5% rise in S&P BSE Sensex and 2.5% gain in auto sector index.
The Punjab-based engine-maker had reported a 23% year-on-year jump in net profit at Rs 17 crore for the quarter ended September 2013. The company had posted highest ever quarterly sale of 18,484 units in September quarter as compared to 14,389 units sold during the corresponding quarter of previous fiscal.
Analyst at Centrum Broking recommends a ‘Buy’ rating on the stock with target price of Rs 790.
"Given the strong cash flows, the company has largely funded its capex through internal accruals delivering healthy return ratios (ROE and ROCE at 30 % plus). The company is debt free and this gives it significant headroom to withstand adverse business cycles," analyst said in a report dated December 18, 2013.
