Shares of auto component major Samvardhana Motherson International has gained 11.5 per cent on the bourses after the company approved the qualified institutions placement (QIP) issue and announced the calculation methodology for its compulsorily convertible debentures, or CCDs, into equity shares.
Analysts cite strong investor response to the issue that has kept the sentiment positive for the stock.
Brokerages, however, have a mixed view on the outlook for the auto parts supplier.
Most brokerages are bullish on the medium-term prospects while indicating that the company is likely to have a bumpy ride in the short term.
Prior to the recent rally, the stock has been under pressure given the high debt, expensive valuations, and weakness in demand in key markets such as Europe.
Recently, luxury vehicle maker BMW revised its full-year margin outlook by 200-300 basis points due to supply-related issues. The margin revision was prompted by delays in vehicle deliveries due to a braking issue.
This story is from the September 19, 2024 edition of Business Standard.
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This story is from the September 19, 2024 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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