This stock zoomed 5% after getting clearance from the Secretary of State for Business in UK

GMM Pfaudler soars on getting the nod to acquire the balance 46% stake in GMMI.

GMM Pfaudler after trading at a higher level on Thursday, closed at Rs 1912 up by 3.76%. The scrip opened at Rs 1840.00 and has touched a high and low of Rs. 1926.70. About 12194 shares were traded on the counter.

The BSE group 'A' stock of face value of Rs 2 has touched a 52-week high of Rs 2110.00 on September 6, 2022, and a 52-week low of Rs 1251.00 on June 14, 2022. Last one week high and low of the scrip stood at Rs 1926.70 and Rs 1830.00, respectively. The current market cap of the company is Rs 8362.67 crore. The promoters holding in the company stood at 54.95%, while Institutions and Non-Institutions held 17.94% and 27.11%, respectively.

GMM Pfaudler received approval from the Secretary of State for Business, Energy and Industrial Strategy, United Kingdom (UK) on September 21, 2022, to acquire a balance of 46% shareholding in GMM International (GMMI). With this transaction, GMMI will become a wholly owned subsidiary of the company.

GMM Pfaudler is a leading supplier of engineered equipment and systems for critical applications in the global chemical and pharmaceutical markets.

The ROE and ROCE of the company are 16.1% and 14.3%. Currently, the stock is trading at a PE of 66.2x. The Q1FY23 topline has increased by 34% QOQ to Rs 739 crore. In the June quarter, the company improved its operating margin to 13.2% from 10.3% in the previous quarter. Companies interest coverage ratio is 6.3x.