Shivalik Bimetal surges 4.5% after Rs 500 crore block deal

Moneycontrol could not immediately ascertain the buyers and sellers involved in the transaction.

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Shares of Shivalik Bimetal Controls surged 4.5 percent on September 27 after a block deal worth Rs 500 crore took place on the exchanges.

As many as 81.8 lakh shares of Shivalik Bimetal changed hands in a block deal, at a floor price of Rs 611 per share, reflecting a near one percent discount from the previous closing price.

Moneycontrol could not immediately ascertain the buyers and sellers involved in the transaction.

At 09.20 am, shares of Shivalik Bimetal Controls were trading at Rs 639.15 on the NSE.

The company's revenue slipped marginally to Rs 125.98 crore in the April-June quarter, down from Rs 127.19 crore in the year ago period. Net profit also took a hit as it slipped over 16 percent to Rs 17.82 crore from Rs 21.28 crore during the same period last year.

A few months ago, brokerage firm JM Financial initiated coverage of the stock with a buy rating and a target price of Rs 730.

The company, best known for its expertise in manufacturing bimetal and electrical contacts, ventured into the shunt resistor business in 2014-15. Having secured a strong foothold in the domestic market, it is now focusing on boosting export capabilities, supported by recent capital investments and expanded production capacity.

"Overall, we expect revenue/EBITDA/PAT CAGR of 25 percent/29 percent/29 percent over FY24-26E, with RoCE/RoE 30.4 percent/24.1 percent in FY26E. We initiate BUY coverage on SBCL with TP of Rs 730, valuing it at 30x FY26E (currently trading at 22x FY26)", JM Financial said in its note.

Shivalik's competitive edge stems from its long-standing customer relationships, with around 75 percent of sales coming from customized products tailored to specific client requirements. The report highlighted the company’s track record of customer retention, having lost no clients in the past decade.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.