SML Isuzu

SML Isuzu was formed in 2010 from the Swaraj Mazda company after Mazda pulled out of the venture. The name ‘Swaraj’ was sold to Mahindra when the tractor division, Punjab Tractors was sold off. Today, it makes buses, tempos and trucks. Currently Sumitomo Corporation of Japan holds 43.96% and Isuzu Motors of Japan holds 15%, as at 31 December 2014. The stock had hit a new high yesterday at Rs.1276 though it later slipped into the red. The ‘high’ was a celebration of its February sales, wherein it posted a whopping 119% (YoY) jump in sales.

Obviously, the high could not be sustained as fundamentally, the company is on a poor footing. The company posted a 24% (YoY) rise in net sales at Rs.210 crore but higher costs, led by higher raw material costs, employee costs and other expenses pushed the company into the red, with a net loss of Rs.3 crore compared to loss of Rs.4 crore in Q3FY15.