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Tega Industries rallies 8%, hits 52-week high on strong growth prospects

 

Shares of Tega Industries hit a 52-week high of Rs 709.55 as it gained 8 per cent on the BSE in Thursday’s intra-day trade on strong growth prospects. In the last three trading days, the stock of the industrial products company has gained 13 per cent, taking it from its previous high of Rs 706.25 hit on March 9, 2023. In comparison, the S&P BSE Sensex was up 0.27 per cent. At 12:48 p.m. at 58,374 St.

Tega

Tega made its stock market debut on December 13, 2021. The company issued shares through an initial public offer (IPO) at a price of Rs 453 per share. Post listing, the stock hit a record high of Rs 767 on the same day. On the flipside, it touched a record low of Rs 398 on February 24, 2022.

The stock has rallied 11 per cent in the last one month after the National Company Law Tribunal (NCLT) approved Tega’s resolution plan for acquisition of McNally Sayaji Engineering (MSEL) through the Corporate Insolvency Resolution Process (CIRP).

Tega is a global leader in the design and manufacture of ‘critical to operate’ consumables for the mining, mineral processing and materials handling industries. MSEL provides leading solutions in the field of manufacturing and marketing of Crushing, Screening, Grinding, Material Handling and Mineral Processing Equipment with integrated customer support and after sales service.

Tega said the acquisition is expected to be completed in the next two months. The financing for the acquisition will be through an optimal mix of internal resources and debt.

The company said it is looking to expand its product offerings to grow its business globally and in India. “This acquisition is expected to enhance value for the company and its shareholders, marked by opportunities for revenue growth and margin expansion over the medium term. This acquisition is expected to position Tega among the most integrated global companies in its will strengthen its brand and visibility as a global solutions provider,” the company said.

Meanwhile, during the October-December quarter (Q3FY23), Tega’s revenue grew 15 per cent year-on-year (YoY) to Rs 258 crore, as against Rs 297 crore in the year-ago quarter. Operating Ebitda increased to 22.66 percent as against 19.78 percent in the same period last year. Profit after tax increased by 44 per cent to Rs 48.4 crore during the quarter. The company has a strong order book of Rs 325.3 crore as on December 31, 2022.

The company’s management said third-quarter results built on strong momentum from H1 sales, which grew strongly across all regions. The increased scale has led to improved operating leverage and significant margin improvement both annually and quarter-over-quarter.

Management said significant improvements in the global supply chain, normalization of logistics and transportation costs also contributed to the improved margins, which are also visible in the third quarter.

 

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