Smallcap stock zooms 10% as SBI MF buys 3% stake; HDFC MF holds 7% equity

Shares of smallcap firm Savita Oil Technologies soared 10 per cent to Rs 454 in Tuesday's intra-day trade as data revealed SBI Mutual Fund (MF) bought nearly 3 per cent stake in the specialty petroleum company via a block deal on Friday, March 22. 

NSE data showed SBI MF bought 2.07 million shares (20.73 lakh), around 2.99 per cent of the company's total paid-up share capital, at Rs 408 apiece from its promoter entity Mehra Syndicate. This was at a discount of nearly 1 per cent as of closing on March 22. 

As of December 2023 end, Gautam N Mehra, a promoter (on behalf of Mehra Syndicate), held 62.78 per cent holding in the company. Post the dilution, this stake has been reduced to 59.78 per cent. Total promoter shareholding was 72.92 per cent.  

 

Among non-promoter public shareholders, HDFC Mutual fund (via HDFC Balanced Advantage Fund) held 7.4 per cent stake in Savita Oil, according to data on BSE. 

Despite today's gains, the stock is down 6 per cent from its 52-week high of 484.35 reached on February 26. However, it has surged 96 per cent from its 52-week low of Rs 231.95 that was touched a year ago on March 28, 2023. 

Savita Oil is a leading manufacturer of specialty petroleum products such as transformer oils, liquid paraffins and white oils. It derived 75 per cent of sales in FY23 from this segment. Automotive and industrial lubricants made up 24 per cent of total sales. 

The company caters to industries such as power generation and distribution, automotive, thermoplastic rubbers, FMCG, plastics, pharmaceutical, agriculture, refrigeration among others.

Its range of lubricants, greases, and coolants are also sold to retail customers under the brand SAVSOL.

It sells transformer oils under “TRANSOL” brand to key clients such as BHEL, NTPC, Power Grid and Tata Power, among others. 

Its products across white and mineral oils cater to clients like HUL, Dabur, Emami, Marico and J&J. It also claims to be among the preferred suppliers to automotive OEMs for lubricant applications. Some of its clients include Hero Moto, Tata Motors, M&M, among others. 

In the December quarter (Q3FY24), its revenue from operations rose to Rs 958.4 crore from Rs 908.6 crore a year ago. The Ebitda margin saw sharp growth to 11.1 per cent for the quarter from 5.8 per cent from a year ago. Net profit jumped 134.7 per cent YoY to Rs 67.4 crore. 

However, on a 9-month period basis (April-December 2023), its net profit was down 10 per cent to Rs 170 crore from a year-ago period.