Banco tumbles down over 7%

Banco India’s Board was to meet yesterday to decide on the buy back proposal. They met and decided, “after detailed deliberations and discussions, to drop the proposal of buyback of equity shares of the Company and decided not to further proceed with the proposal of buyback of equity shares of the company.”

Obviously the market was extremely disappointed with this news and the stock price tanked over 7% to Rs.180.15 and remains firmly in the red.

The company is an OEM for commercial vehicles, passenger vehicles and industrial products and largest exporter of aftermarket radiators to the Europe. The company had ended Q2FY17 with a consolidated net profit of Rs.32 crore, up 28% (YoY) on a 9% growth in revenue at Rs.375 crore. EBITDA during the quarter was up 25% at Rs.52 crore.