Bombay Burmah stock zooms 15% on jump in volume; up 47% in June

Bombay Burmah stock update: The stock hit a new high at Rs 2,168 on the BSE in Friday's intra-day trades.

Shares of Bombay Burmah soared 15 per cent to hit a new high at Rs 2,168 on the BSE in Friday's intra-day deals amid renewed buying interest at the counter after Sebi tweaked norms for holding companies.

At 11:30 am, Bombay Burmah was trading 11.4 per cent higher at Rs 2,101 on trades of around 1 lakh shares on the BSE as against the two-week average volume of around 36,000 shares. Meanwhile, the S&P BSE Sensex was up 270 points or 0.3 per cent at 79,500.

Bombay Burmah stock has surged 47 per cent so far this month. Most of its gains, i.e. the stock has gained 33.3 per cent in the last six trading sessions after the market regulator, the Sebi, announced a framework for special call auctions with no price bands for price discovery of investment holding companies.

 

As per Buiness Standard report, Sebi's new framework for holding companies tries to address the valuation gap of the holding/ investment companies as against the intrinsic value of thier investments. READ MORE

Holding companies, or holdcos, do not have operations of their own but hold stakes in other assets including shares of other listed companies. These firms mostly hold investments in their own group companies. There are nearly 70 listed holdcos in the Indian market. These typically trade at a higher discount than the intrinsic value of their holdings. 

Bombay Burmah is part of Wadia Group conglomerate, established in 1863. The company  deals in various businesses such as - tea and coffee plantations, foods, textiles, chemicals, electronics, health care and real estate. The company's annualised turnover now stands at $1.2 billion.

For the quarter ended March 2024, Bombay Burmah reported a 116.3 per cent year-on-year (YoY) surge in Q4 net profit to Rs 261.84 crore. Total income, however, was down 4.4 per cent YoY at Rs 4,244.82 crore.

On the bourses in the last one year, while the stock trades at record high, has hit a low of Rs 971.