IFB Industries shares gain 5.5% after Societe Generale picks up stake

Shares of IFB Industries jumped 5.5 percent in early trade on June 7, a day after Europe-based financial services group Societe Generale bought 3 lakh shares or a 0.74 percent stake in the company.

The shares were bought at an average price of Rs 800 apiece through open market transactions on June 6. The seller of the stake could not be identified by Moneycontrol.

IFB Industries is involved in the manufacturing of household appliances, machine tools, and automobile parts.

At 10.13 am, shares of the company were trading at Rs 824.20 on the National Stock Exchange, up 2.64 percent from the previous close. The stock touched an intraday high of Rs 847.30 in the first hour of trade.

Trading volumes were also strong as two lakh shares changed hands on the exchanges, as against the one-month daily traded average of 73,000 shares.

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Apart from Societe General, Nippon India Life and Plutus Wealth Management are the major institutional investors holding stake in the company.

The company also reported an 11.84 percent jump in revenue to Rs 994 crore during the fourth quarter. Net loss also narrowed to Rs 7.55 crore in Q4, down from Rs 28.52 crore in the corresponding quarter of the previous fiscal.

Brokerage firm Centrum Broking believes the scale-up in AC and healthy growth in washing machine segments will be key revenue drivers for IFB Industries. However, the broking firm also cautioned that attaining high single-digit margin will be the key challenge for the company, especially amid high competition.

Centrum Broking has an ‘add’ call for IFB Industries, with a target price of Rs 875.

The stock is down 8.6 percent in 2023 so far but has given 89.61 percent returns in the past three-year period.

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