One of the micro-cap stocks engaged in manufacturing a complete seating system and interior components for automotive and surface transport. The stock has jumped by 5.10 percent after reporting the quarterly results of September 2024 and the bonus issue of 1:1

Share Price Movement 

Bharat Seats Limited’s share has jumped by 5.10 percent from the previous close of Rs. 206.90. The stock opened at Rs. 209.95 and is currently trading at Rs. 217.45  with a high of Rs. 222.65 and a low of Rs. 205.50. The market capitalization now stands at approximately Rs. 682.64 crore.

What Happened

The Board of Directors of Bharat Seats Limited has approved issuing bonus shares in the ratio of 1:1, meaning shareholders will receive 1 fully paid-up equity share of Rs. 2 each for every 1 fully paid-up equity share held. The company is using Rs. 6.28 crore in free reserves to execute the bonus issue.

Q2 FY25 Result Walkthrough

Bharat Seats Limited’s recent quarter saw a rise in revenue and net profits, which led to this bullish movement in the stock price. According to its recent filing, in the quarter ending September 2024, Bharat Seats Limited’s revenue from operations has increased by 1.64 percent YOY, from Rs. 285.98 crore in Q2 FY24 to Rs. 290.67 crore in Q2 FY25, and down by 2.74 percent QoQ from Rs. 298.85 crore in Q1 FY25. 

Bharat Seats Limited’s net profit has increased by 3.37 percent YOY, from Rs. 6.83 crore in Q2 FY24 to Rs. 7.06 crore in Q2 FY25. As compared to the last quarters, the company’s net profit is up by 7.46 percent QoQ from Rs. 6.57 crore.

The company’s EPS has increased by 7.11 percent from Rs. 2.11 in Q1 FY25 to Rs. 2.26 in Q2 FY25. 

In terms of return ratios, Bharat Seats Limited’s share ROE and ROCE are currently at 15.9 percent and 15.3 percent, respectively. Bharat Seats Limited has a debt-to-equity ratio of 0.96x.

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Shareholding Pattern

Bharat Seats Limited has a majority stake held by the promoters at 74.59 percent, domestic institutional investors at 0.11 percent, and the public at 25.31 percent as of September 2024. The company has a majority holding of Maruti Suzuki India Limited at 14.81 percent and Suzuki Motor  Corporation at 14.81 percent.

Company Overview

Bharat Seats Limited was established in 1980 and stands as a pioneering manufacturer of automotive seating systems in India. The company emerged through a strategic joint venture between Rohit Relan & Associates, Maruti Udyog Limited, and Suzuki Motor Corporation Japan. With technical expertise from Houwa Kogyo Company, Japan, they produce complete seating solutions for both four-wheelers and two-wheelers.

The company operates five manufacturing facilities across Haryana and Gujarat. Bharat Seats serves major clients, including Maruti Suzuki and Suzuki Motorcycle India. The company specializes in diverse products like molded carpets, NVH components, and railway seats. The company’s commitment to innovation shows through the development of ficon-free materials and enhanced safety features. As the sole seating supplier for various Maruti models, they maintain a strong market presence in India’s automotive sector.

Written By- Nikhil Naik

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