Buzzing stocks: These 4 industrial product microcaps zoomed up to 20%

Hercules Hoists, Gala Precision Engineering, Lokesh Machines and Windsor Machines surged between 10 per cent and 20 per cent on the BSE in an otherwise weak market.

Shares of these industrial products companies were in focus, with 4 microcaps rallying up to 20 per cent on the BSE in Thursday’s intra-day trade backed by heavy volumes in an otherwise weak market.

 

Hercules Hoists (HHL), Gala Precision Engineering (GPEL), Lokesh Machines and Windsor Machines surged between 10 per cent and 20 per cent. In comparison, the BSE Sensex was down 1.1 per cent at 79,497 at 11:59 am.

 

Among individual stocks, GPEL hit a record high of Rs 1,330, as the stock soared 19 per cent on the BSE. It has zoomed 151 per cent against its issue price of Rs 529 per share in just 2 months. The company made its stock market debut on September 9, 2024.

 

 

GPEL said the movement in the price is purely market driven and is based on the market conditions. The management of the company is in no way connected with the movement in the price of the stock.

 

GPEL is a precision component manufacturer of technical springs like disc & strip springs (DSS); coil & spiral springs (CSS) and Special Fastening Solutions (SFS). The company supplies its products to original equipment manufacturers (OEMs), Tier 1 and channel partners; used in sectors like renewable energy, including wind turbine and hydropower plants, various industrial sectors like electrical, off-highway equipment, infrastructure and general engineering, mobility segments, such as automotive and railways.

 

GPEL has a strong customer base with stickiness in products as it meets stringent specifications & technical requirements, reliability in supplies, and cooperation with German and Indian institutes for new product development. Key customers include Vestas Wind Technology India Private Limited, L&T Electrical & Automation, Schneider Electric, and Brembo Brake India Private Limited.

 

HHL, the Bajaj group company, was locked at the 20-per cent upper circuit at Rs 239.60 on the BSE. The company demerged its manufacturing undertaking to Indef Manufacturing (IML).

 

On rationale behind the demerger, HLL said the demerger will result into splitting of manufacturing business and investment business of the demerged company with a view to unlocking value, enhance the scope of work of both, the demerged company and the resulting company, and further to draw new investors, JV, bringing technology partner, merger and acquisition for exploring other growth potential in it.

 

The growth of the material handling products industry is intricately tied to the expansion of construction, infrastructure, manufacturing, transport, and shipping activities. With the rapid modernisation of industries such as food processing, pharmaceuticals, agriculture, and chemicals, alongside advancements in transportation and warehousing, the demand for material handling systems is poised to soar.

 

As the Indian economy continues to strengthen, there will be a notable surge in demand for manufactured goods, thereby creating significant opportunities for suppliers offering a diverse range of material handling products and services. We anticipate that industry growth will taper down and stabilize to a more sustainable long-term rate, hovering within the range of 7-10 per cent, HLL said in its FY24 annual report.

 

Meanwhile, shares of Lokesh Machines were also locked at the 20 per cent upper circuit at Rs 393.70 on back of a 2-fold jump in average trading volumes.

 

Last week, the company’s name appeared on the sanctions list of the United States Department of Treasury. Commenting on the reports, Lokesh Machines said that it is in the process of contacting the US Department of Treasury to gather further details on the situation.

 

“We have neither been contacted nor informed by the United States Department of Treasury of any such list. The news articles stated that we have been sanctioned for supplying Russia with technology and equipment that could be used for military operations. It must be noted that we are not aware of any machines being used or dealt by any sanctioned entities or individuals,” the company said.

 

Lokesh Machines’s operations can be segregated into two divisions, namely, machines and components division. The product portfolio consists of machine tools such as CNC Lathes, Vertical Machining Centres, Horizontal Machining Centres, Vertical Turning Centres, Special Purpose Milling Machines, Line Boring Machines and Gun Drilling Machines, among others.

 

The company’s clientele includes Ashok Leyland, Kirloskar Oil Engines, Mahindra and Mahindra, Siemens Financial Services, Oswal Pumps and International Tractors among others. This apart, the company has its presence in exports market including Turkey, Russia, Netherland, and Italy.

 

Shares of Windsor Machines were locked at the 10 per cent upper circuit at Rs 237.20, also its 52-week high. The average trading volumes at the counter jumped over 10-fold.

 

After successfully developing the Two Platen machine models, KL1600, KL2000, and KL2300, which were the highest capacity machines entirely “Made in India,” the company is executing the KL3200 machine, which will set another milestone in the Indian Plastic Moulding industry.

 

India exports plastic products to more than 65 countries worldwide. The top importing regions for consumer and houseware products are Africa, the Middle East, and Southeast Asia. The Minister for Commerce and Industry, Mr. Piyush Goyal, recently encouraged the industry to adopt international standards to expand its global footprint. Additionally, India has signed free-trade agreements with the UAE and Australia, creating new opportunities for the plastics industry, Windsor Machines said in its FY24 annual report.