Multibagger stock: Remsons Industries share price up over 3,000% in 10 yrs but negative in last 6 months. Time to sell?

Multibagger stock: Even though Remsons Industries share pricehas recently seen some low points, the firm's share price has shot up by almost 125% in the last year. The stock has dropped 11.26% in just one month. On the other hand, the stock's longer-term growth has been impressive, rising 263.32% during the previous three years, 912.77% over the lastfive years, and 3,362.17% over the last ten years.

For the last 50 years, Remsons Industries has been a manufacturer of automotive OEM components, serving two-, three-, and four-wheeler vehicles, commercial vehicles, and off-highway vehicles across India and to automotive OEMs worldwide. Remsons is a Mumbai-based company with cutting-edge locations in Gurgaon, Pune, Pardi, Daman, and Stourport, England (UK).

Q1 Results

Remsons Industries share price dropped by 2% today following company's muted Q1FY25 results. The company's consolidated revenue for the quarter ended June 30, rose 5% to ₹76.5 crore year-on-year, and the profit after taxes jumped 35% on year to ₹2.7 crore.

Remsons' 1QFY25 performance was in line with expectations, according to Krishna Kejriwal, Managing Director of the company. Revenue increased 5% YoY to ₹76.5 crore. In 1QFY25, the quarter's EBITDA was ₹65 crore, with an 8.5% margin. Net profit rose by 36% YoY to ₹2.7 crore in the current quarter, confirming their impressive financial success. The business is on course to meet its FY28 target of between ₹900 and ₹1,000 crore.

"Our positive outlook is fuelled by the belief that our growth trajectory will see significant enhancement through strategic partnerships, including synergistic joint ventures, acquisitions, and collaborations. As always, we remain dedicated to shareholder value creation with unwavering passion and commitment. In the coming quarter and beyond, we'll focus on strengthening our business model by climbing the value chain, ensuring continued success,” said Kejriwal.

Key Business Updates

Talking about its updates during the quarter in an exchange filing, the company announced that it had secured a fourth order from Tata Motors for the delivery of winches for the company's new Tata Nexon CNG model's spare wheels. The deal, which will be completed over the course of three years, has a total value of ₹30 crore.

Additionally, in order to become a subsidiary of Remsons, the current promoters of the recently formed joint venture "Remsons-Uni Autonics Private Ltd." sold a 55% interest to Remsons.

Remsons Shares Stock Split was carried out to lower the share price and increase accessibility for a wider group of investors. (Dividing equity shares originally priced at ₹10 each to ₹2 each).

Remsons Industries Share Price

On Friday's upbeat session, Remsons Industries share price opened at an intraday high of ₹183 apiece on BSE; the stock touched an intraday low of ₹171.40.

“This is a low volume stock and there's no major traction in the near term, prices are now trading near its key long term support of 200SMA which if broken at ₹168 may trigger further weakness in near term towards ₹155, on the flip side, ₹190 is resistance if broken can push for some momentum,” said Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One.

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