TVS Srichakra share rose over 9% today after the firm announced Rs 1,000 crore capital expenditure plan which includes ramping up of capacities at its facilities. The stock gained 13.5% in the last 2 days. The share opened with a gain of 2.97% at Rs 1,755 on BSE.
The small cap stock touched an intraday high of Rs 1,868 , rising 9.59% on BSE. TVS Srichakra share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The share has gained 9.2% in one year and risen 11% since the beginning of this year. In a month, the share has gained 27.45%. The firm logged a market cap of Rs 1,401 crore.
The investment spread over a three years would result in 25-30 percent increase in two-three wheeler tyre capacity and also doubling of 'off-highway' tyres at its facilities in Madurai and Pant Nagar, respectively, said the manufacturer of two and three-wheeler tyres.
The proposed capital expenditure would be met through "a mix of debt and internal accruals', the Tamil Nadu based company said.
"We are further strengthening our manufacturing capabilities to cater to the growing demands in India and abroad. We believe that this capital outlay will enable TVS Eurogrip to further its growth aspirations and help strengthen its partnerships with vehicle manufacturers...," TVS Srichakra Ltd Director, S Ravichandran said.
Meanwhile, both indices touched all-time highs today, with Sensex hitting 45,970 and Nifty touching 13,494 for the very first time. The rally was backed by backed by positive global cues, progress in COVID-19 vaccine, strong FIIs inflows and signs of economic recovery.
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