Hindustan Motors shares jumped nearly 10 per cent on Wednesday after the automaker announced plans to expand its electric vehicle (EV) domain. The stock jumped 9.85 per cent to hit a day’s high of Rs 18.40 on the BSE from its previous close of Rs 16.75. The shares were in the upper circuit till the news was written.
About 5.79 lakh shares were traded today, with a total turnover of Rs 1.05 Crore. The market capitalization of the company stood at Rs.383.93.
The BSE Group ‘B’ stock with a face value of Rs 5 has touched a 52-week high of Rs 26.80 on June 15, 2022 and a 52-week low of Rs 9.51 on May 12, 2022.
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In an exchange filing, Hindustan Motors said it has “entered into a memorandum of understanding (MoU) to expand cross-border EV domain to enhance production of environment-friendly electric vehicles.”
Earlier, Hindustan Motors and its European partner had completed due diligence for the proposed electric two-wheeler project.
AR Ramachandran of Tips2trades said, “Hindustan Motors’ entry into the EV segment and foray into the 2-wheeler segment has led to a sharp rise in the stock price.”
“Investors can buy the stock only if it closes above Rs 18.35 for a potential target of Rs 26,” he added. Strong support will now be at 15.6-16.
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Hindustan Motors, once known for its Ambassador cars, equipped itself with state-of-the-art facilities for the production of passenger cars, trucks and multi-utility vehicles.
As of September 30, promoters’ holding in the company stood at 32.34 per cent, while that of institutions and non-institutions stood at 3.14 per cent and 64.52 per cent, respectively.