Mumbai, March 31 (SocialNews.XYZ) FY22 has brought in healthy appreciation in stock value of two Tata Group companies -- Tinplate Company of India Ltd and Automotive Stampings and Assemblies Ltd.
Stocks of the two firms have seen a massive surge in FY22 on the back of healthy earnings growth, demand and future expansion plans.
In FY22, Tinplate Company of India's stocks rose 150 per cent to Rs 401.45 per share, while those of Automotive Stampings and Assemblies' scrip went up by 1,659 per cent to Rs 587.65.
"The company (Automotive Stampings and Assemblies) manufactures sheet metal components for tractors and chips for the automotive sectors," said Kshitij Purohit, Lead of Commodities and Currencies CapitalVia Global Research.
"Now, China is under a lockdown and this an opportune time for the company to increase world market shares."
Deepak Jasani, Head of Retail Research, HDFC Securities, said: "Automotive Stampings stock price has been rising and falling circuit to circuit without any major positive or negative news. Hence, the up move over the last few quarters seems to be more due to trader activity in a Tata group company."
"Tinplate has shown remarkable improvement in its financial performance since June 2021 quarter. Like a lot of other commodity stocks, Tinplate has also benefited out of resurgence in demand post Covid and the underlying demand from the addressable markets remains buoyant."
Jasani pointed out Tinplate, which is a subsidiary of Tata Steel, is looking to ramp up production capacity at an estimated investment of Rs 1,800 crore.
"The company, which has a production capacity of 3,79,000 tonnes per annum (TPA), is looking to put up an additional capacity of 3,00,000 TPA at its existing unit in Jamshedpur."
IIFL Securities VP, Research, Anuj Gupta said: "Both companies are manufacturing auto parts and in the last 2 year we have seen a jump in metal prices which has benefited both the companies because of higher prices."
Source: IANS
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