Actions GMM Pfaudler hit a 52-week high of Rs 2,096 as they rose 10 percent on the BSE in intraday trade on Tuesday amid heavy volumes. Shares of the industrial equipment company have risen 26 percent over the past week amid strong growth forecasts. In comparison, the S&P BSE Sensex was down 0.37 percent during the period.
At 12:37 p.m., GMM Pfaudler traded 9.6 percent higher at Rs 2,083, compared with a 0.20 percent rise in the S&P BSE Sensex. Average over-the-counter volumes jumped more than four-fold with a combined 1.37 million shares changing hands on the NSE and BSE. On August 12, 2020, the stock hit a record high of Rs 2,305.
GMM Pfaudler is a leading supplier of specialty equipment and systems for critical applications in the chemical, pharmaceutical, food and energy industries to organizations worldwide.
According to the company, the government’s focus on positioning India as a global procurement hub, a credible alternative to China to become self-sufficient, coupled with its efforts to advance in the Global Ease of Business ranking is expected to attract investment to India. . These efforts should open up exciting growth opportunities for GMM Pfaudler.
“Strong growth is also expected due to increased market size, investment and exports in the pharmaceutical, specialty chemical and agrochemical industries over the next 5 years,” GMM Pfaudler said in its FY22 annual report.
The pharmaceutical sector is expected to grow, with key drivers being patent expiry, the China +1 strategy, rising PE investment and reduced regulatory risk. The Manufacturing Incentive Scheme (PLI) will further boost investment in the pharmaceutical sector. In the chemicals sector, growth is expected on the back of robust capital spending along with opportunities from global presence and value chain integration, the company said.
In addition, on August 4, the board of GMM Pfaudler approved the acquisition of 46 percent of the paid-up share capital of the existing foreign subsidiary GMM International Sarl from Pfaudler International Sarl (part of the promoter group of the company) and Millars Concrete Technologies Private Limited (part of the promoter group of the company), which will result in , that the company will own 100 percent of the Pfaudler International business.
ICRA notes that the company’s debt level at the consolidated level will increase somewhat more than previously expected, which will soften the debt coverage ratio.
“However, increased scale of operations as well as increased profitability of the business will support its credit profile. In addition, the consolidation of the balance sheet stake in GMM International Sarl will improve the company’s retained earnings,” the rating agency said in a report. August 16, 2022