SML Isuzu hits the ceiling

SML Isuzu hit the 5% upper circuit at Rs.598.55 the moment it opened the day at this level for trading. This is a complete turnaround in moods given the fact that it had hit the lower circuit consistently for past two trading sessions.

The stock is in the reckoning after it posted a very good show for Q1FY15. The company posted an over two times rise in net profit at Rs.23 crore (YoY) and this was on a 19% jump in net sales at Rs.336 crore. Operating profit came in at Rs.31 crore, against Rs.6 in Q4 and Rs.15 crore in Q1 of FY 14. Q1 EPS is at Rs.16.18, which was at Rs.12 in FY 14. Our Editor, Mr.SP Tulsian advises one to to buy the stock as an investor

The market is also enthused with the news that the company plans to invest Rs.220 crore over the next 3 years for product improvement and upgradation of technology and plant infrastructure.