Sundaram-Clayton shares fall on heavy volume

Sundaram-Clayton Ltd's shares fell due to heavy volumes in Friday's trade. The stock gained 20 per cent to hit a day low and its lower price band of Rs 3,858. Its previous close of Rs 4,823 was 80 over it. The share price went up ahead of the issuance of bonus share to eligible shareholders. Sundaram-Clayton is part of TVS Group, which is involved in auto components manufacturing and distribution. It is a supplier of aluminium die castings to the automotive and non-automotive sectors. The company is currently in the process of segregating and reorganizing its businesses.

The company fixed March 24, 2023 as the record date to determine eligible shareholders who will be entitled to receive the NCRPS bonus from the company in the 1: 116 ratio.

Each equity shareholder of the Company will get 116 fully paid up NCRPS having a face value of Rs 10 each of the company, as per the record date, it stated in an exchange filing.

Around 14,000 shares changed hands on the BSE today, which is more than 20 times more than the two-week average volume of 658 shares. Turnover on the counter was at Rs 5.45 crore, commanding a market capitalisation m-cap of Rs 7,807. 16 crore.

Today's low price was Rs 3,858. The stock traded 33.46 per cent less than its 52 week high of Rs 5,799. The counter was able to climb 10.25 per cent from its one-year low of Rs 3,500, touched on May 16 last year.

The stock was last seen trading lower than the 5 day, 20 day, 50 day, 100 and 200 day moving averages on the technical front. The RSI, the counter's 14 day relative strength index, came at 18.88. A level below 30 is defined as oversold, while a value above 70 is considered overbought. The company's stock has a price-to- equity P E ratio of 11.70.

Sundaram-Clayton is bearish on the daily charts and close to the support of Rs 3,950 could lead to Rs 3,700, according to AR Ramachandran from Tips 2 trades. The resistance will be at Rs 4,538. Sundaram-Clayton's standalone net profit for the quarter ended December 2022 FY 23 was more than doubled against a year ago, as Sundaram-Clayton's net profit increased to Rs 34.18 crore. Revenue from operations increased to 503.49 crore from Rs 426.99 crore during the quarter under review.

Financials, state-owned lenders, metals and energy stocks dragged Indian equity benchmarks into the red in late-morning deals.