TVS Srichakra soars over 40% in four days on strong Q2 results

 TVS Srichakra has soared 13% to Rs 1,739, extending its past three days rally on BSE, after reported an over three-fold jump in standalone net profit at Rs 26 crore for the second quarter ended September 2014 (Q2), on back of strong volume growth. Auto tyre and rubber products maker had profit of Rs 8.27 crore in the same quarter last fiscal Free Stock Share Tips

Net sales of the company grew 13% year-on-year (yoy) at Rs 467 crore from Rs 413 crore in the corresponding quarter of previous year.

The operating margin expanded by 352bp on a yoy basis to 10.3% on account of lower raw material cost which declined by 498bp yoy to 61.9% of sales Nifty Trading Tips

“We expect the operating margin to improve to 9.4% in FY2016E on the back of lower rubber prices and improvement in market share in the aftermarket segment. Consequently, the net profit is expected to be at Rs 105 crore in FY2016E”, says analyst at Angel Broking in a report dated November 10, 2014.

Currently, the stock is trading at its record high on BSE. It rallied 44% in past four trading sessions from Rs 1,206 on November 7, after reporting a better-than-expected set of numbers. The benchmark S&P BSE Sensex gained a marginally by 0.41% during the same period Financial Trading Tips