Sandhar Technologies is having one volatile run today. The stock, which closed yesterday at Rs.268.65, opened higher at Rs.272.40 but soon profit booking at this level, pushed down the stock into the red, to Rs.266 levels and remains in the declines.
The market initially reacted positively to the news that it has entered into a JV with Han Shin Corporation, Republic· of Korea. The joint venture is being established for manufacturing and selling, inter-alia, electronic parts and accessories for the automotive industries in India which would include Antenna, Radio Cable, AV/NAVI Cable, GPS/DMB Cable, USB Cable, A VM Cable etc.
This JV will be 50:50 though no financial details of the deal have been divulged. Apart from this one, it already has six JVs with other international and Indian companies.
The company had gone public in March last year, offering shares at Rs.332/share.
Sandhar Technologies is one of the largest locking and rear view systems auto component maker in India, catering to two-wheelers, commercial vehicles, passenger cars, off-highway vehicles and tractor segments of the auto market, supplying auto components to 79 OEMs in India and overseas, from its 31 manufacturing factories across 8 Indian states, 2 in Spain, 1 in Mexico and 1 assembly unit in Poland. Its biggest client in India is Hero Moto.
Given the state of the auto sector currently, despite the JV, the market does not see any reason to celebrate as auto component companies are also likely to be adversely impacted by the slowdown.
The company will be declaring its Q1FY20 earnings on 3rd August.