Universal Autofoundry locked in upper circuit after Ashish Kancholia picks up 8.5% stake

The company reported a 6.28 percent increase in profit for the quarter ended June 30, 2023, at Rs 3.55 crore.

Shares of Universal Autofoundry Limited were locked in the upper circuit for the second day in a row after ace investor Ashish Kancholia picked up an 8.54 percent stake or 10.34 lakh shares in the company through open market transactions at an average price of Rs 161.59 per share on August 24.

The grey iron casting manufacturer was locked at Rs 232 per share, trading 20 percent higher from the previous close on the NSE. In the last two sessions, Universal shares have given a 44 percent return.

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Himalaya Finance & Investment Company also bought 10.34 lakh shares in the company at an average price of Rs 168.49 per share.

According to August 24 data, promoters and the promoter group were the selling shareholders in the iron foundries company. Urmila Gupta sold 1.17 lakh shares at an average price of Rs 193.4 per share, Payal Gupta offloaded 9.85 lakh shares at Rs 160 each, Kishan Lal Gupta 1.77 lakh shares at Rs 193.4 each, and Amit Gupta sold 7.71 lakh shares at Rs 160 each. They exited the company by selling their entire personal holdings.

Investors on August 24 also cheered the company's first-quarter results. The company reported a 6.28 percent increase in net profit for the quarter ended June 30, 2023, at Rs 3.55 crore. Sequentially, profits were higher by 132 percent, compared to Rs 1.53 crore in the previous quarter. Revenue was down 5.91 percent at Rs 57 crore, compared to Rs 61.17 crore last year.

After the results, the stock was locked in the upper circuit when it zoomed over 19 percent to Rs 193.

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