Smallcap stock jumps 4% after Govt imposes anti-dumping duty on roller chains from China

The shares of industrial appliance manufacturers gained up to 4 percent after the government imposed an anti-dumping duty on roller chains from China. 

Price movement 

With a market capitalization of Rs 5,235.03 crore, the shares of IFB Industries Ltd were trading at Rs 1,292.00 per share, decreasing around 1.06 percent as compared to the previous closing price of Rs 1,305.80 apiece. 

Reason for Rise 

The share of IFB Industries Ltd is in focus after the government imposed an anti-dumping duty on roller chains from China. The company had sought anti-dumping duty on imports of roller chains. Additionally, the DGTR has proposed an anti-dumping duty on Pretilachlor imports from China, a herbicide used for weed control in rice and paddy fields. It has also recommended a similar duty on acetonitrile imports from China, Russia, and Taiwan to curb unfair trade practices. 

Financial condition 

Analyzing the company’s financial performance, revenue zoomed by 8 percent from Rs 1,133 crore in Q3FY24 to Rs 1,228 crore in Q3FY25, during the same time, net profit stretched by 41 percent from Rs 24 crore to Rs 34 crore. 

It has a P/E ratio of 43.0, compared to the industry’s P/E ratio of 64.8, indicating that the stock is trading at a lower price, the stock is undervalued. Additionally, the company’s debt-to-equity the ratio stands at 0.21. 

Also read: Infra stock jumps 4% after receiving ₹22 Cr order for new construction project

Margin Guidance 

Margins declined due to lower washer sales, which offer higher margins than ACs. Management expects improvements as Rs 200 crore cost-reduction initiatives take effect over 18 months, with major gains in 12 months. Efficiency efforts focus on optimizing machine weight, logistics, and design to enhance profitability. 

New Developments 

The company engaged Alvarez & Marsal for a cost-reduction initiative to drive savings and efficiency. It launched new washing machine models, receiving positive channel feedback. Additionally, it is developing products for the railway and electronics sectors, though no acquisitions have been finalized yet.

Strategic Focus 

The company aims to strengthen marketing and brand positioning to boost visibility and sales. Management is focused on improving sales in underperforming states like Andhra Pradesh and Telangana while streamlining operations across plants to cut costs and enhance profitability through role consolidation and efficiency improvements. 

Company Profile 

IFB Industries Limited is an India-based engineering company. The Company is engaged in the business of manufacturing diverse parts and accessories for motor vehicles and manufacture and trading of home appliances products. 

Written by Abhishek Singh

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Smallcap stock jumps 4% after Govt imposes anti-dumping duty on roller chains from China appeared first on Trade Brains.