Smallcap stock jumps 4% after Morgan Stanley sold their stake in the company

Published 18-02-2025, 02:29 pm
Updated 18-02-2025, 06:15 pm
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This Newly listed stock which deals in the business of manufacturing a wide range of concrete equipment and services across the value chain, was up 3.8 percent after Morgan Stanley (NYSE:MS) sold their stake through a Bulk deal.

Price Movement

AJAX Engineering Ltd’s (NSE:AJAX) stock in Tuesday’s session touched a day’s high of Rs. 618.35 per share up by 3.81 percent. The stock reiterated from the day’s high and was trading at Rs. 604.55 which is up by 1.50 percent from the previous closing price of Rs. 595.60.

The stock was recently listed on the bourses and listed at a discount of 8.43 percent from its issue price of Rs. 629 per share.

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What Happened?

The company’s stock was in focus after the bulk deal was initiated in the NSE. Morgan Stanley IFSC Fund sold 7,58,091 equity shares of Ajax Engineering with an average price of Rs. 588.74 per equity share.

Financial Performance

Their Q3FY25 results show revenue from operations of Rs. 770 crore which increased by 12.40 percent year on year, from Rs. 685 crore in Q3FY24. Its net profit increased by 21.68 percent year on year, from Rs. 83 crores in Q3FY24 to Rs. 101 crores in Q3FY25.

The Gross Margin for the September 2024 quarter stood at 30.39 percent, PAT margins were 12.72 percent. The Return on Equity was 10.14 percent and the Return on Capital Employed stood at 13.84 percent.

IPO Size

The company was recently listed on the bourses with a total offer size consisting of an offer for sale stood at 1,269.35 crore for an issue price of Rs. 629 per equity share. It was listed on the bourses on 17th February 2025.

Business Segments

As per the recent Red Herring Prospectus (RHP), the company recognizes its revenue from manufacturing concrete equipment. Geographically, India contributed 93.55 percent and the remaining 6.44 percent from the Rest of the World in the September 2024 quarter.

Company Overview

Ajax Engineering Limited is a leading Indian manufacturer of concrete equipment, specializing in self-loading concrete mixers. The company was established in 1992 and offers solutions for construction, including batching plants and pumps.

Written by Santhosh S

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