Dynamatic Tech hits life-time high

Dynamatic Technologies, a rarely heard of company is in the spotlight today. It has hit an all-time high today at Rs.3444 and continues to remain firmly in the green, up almost 13% at Rs.3400 levels. A thinly traded stock, today some 9500 shares changed hands compared to 1900 shares traded on a two-week average.

This Bangalore based small-cap company makes hydraulic pumps, valves and cylinders for tractors, cars and also makes products for the aerospace and defence sectors. FIIs have already zeroed in on this stock  as they held 16.84% stake in the company at end of Q3FY15 and promoters held 51.13%.

Today the reason for the spike up is RBI giving the nod for hiking FII investment limit in the company to 25%. This will give them more traction in the stock, especially given its working in the defence sector, which currently is on the radar of every investor.

The company did not have a very good Q3FY15 as its sales dropped 10% (QoQ) at Rs.112 crore and it also posted a net loss of Rs.2.55 crore.