Share of Minda Industries rose over 4% today after the firm said it would invest over Rs 250 crore in expanding its four-wheel lighting and alloy wheel business to meet the increased demand. The midcap stock has gained after 5 days of consecutive fall. The share opened with a gain of 3.39% at Rs 560 today.
The stock touched an intraday high of Rs 563.6, rising 4.05% against previous close of Rs 541.65 on BSE. The share trades higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.
The share has gained 145% in one year and risen 39% since the beginning of this year. Market cap of the firm rose to Rs 15,073 crore.
As part of this expansion, the automotive components maker will set up a new manufacturing plant at Bhagapura in Gujarat at an investment of Rs 90 crore to cater to increased demand for four-wheeler automotive lighting, Minda Industries, the flagship of UNO Minda Group said.
The plant is expected to commence operations by the quarter ending March 2022 and will stabilise in subsequent couple of quarters, it said. The company currently has manufacturing facilities at Pune, Chennai and Manesar, which are operating at near capacity.
"The automotive lighting industry is witnessing a gradual shift in technology into more LED-based lighting products. With strengthened technical capabilities in next level of lighting technologies, we are well positioned to benefit from these technological shifts and to achieve leadership in the segment," said NK Minda, Chairman and managing Director, UNO Minda.
Meanwhile, Sensex rallied over 800 points in early trade today amid positive cues from the Asian peers. Sensex was trading 820 points or 1.67 per cent higher at 49,824, and Nifty surged 248 points or 1.72 per cent to 14,756. Titan, ONGC HUL and HDFC Bank were the top Sensex gainers rising up to 3.46 per cent.