Arex Industries Latest news | Technical | Fundamental Analysis | Buyback

Summary

The script discusses an upcoming meeting of 'Aar Industries' scheduled for August 27th, where the record date will be finalized for a buyback of its shares at a fixed price of INR 195. The company's current stock price hovers around INR 186, and it is expected to purchase a significant amount of its shares, approximately 10% of the total market. The financials show a steady increase in profits and revenue, with a decreasing order backlog, indicating a positive outlook. The promoters are also increasing their stake, reflecting confidence in the company's future. Overall, the script presents a positive view of the company's performance and potential.

Takeaways

• 📅 The company, Aar Industries, has scheduled a meeting on the 27th of August to finalize the record date for a buyback announcement.
• 💹 The buyback price has already been set at INR 195 per share, which is above the current market price that hovers around INR 186.
• 🔢 Aar Industries is a small-cap company with a market capitalization of approximately INR 73 crores and is looking to buy back a significant amount of its shares.
• 💰 The company has a healthy cash reserve, indicating that it is not taking any loans or bonds for the buyback.
• 📈 The stock has seen a good jump after the buyback announcement, suggesting a positive market response to the company's decision.
• 🔍 The buyback is expected to improve the company's financial results, as it will reduce the number of shares in the market, potentially increasing earnings per share.
• 📉 There might be a short-term retracement in the stock price after the record date is announced, as seen in similar buyback scenarios.
• 📊 The company's financials show increasing revenues and net profits, with a continuous order book, indicating a positive outlook.
• 📉 However, there is a decrease in gross profits and net profits, which might be a concern for investors.
• 💡 The promoters of the company are also increasing their stake, showing their confidence in the company's future.
• 🚀 Long-term prospects for the company are positive, with the buyback seen as a value-creating move by the management.

Q & A

What is the purpose of the upcoming meeting of the company?

The purpose of the upcoming meeting is to finalize the record date for the buyback of shares.

When is the meeting scheduled to take place?

The meeting is scheduled for the 27th of August.

What is the already announced buyback price for the company's shares?

The company has already announced a buyback price of 195 for its shares.

What is the current price range of the company's shares in the market?

The current price range of the company's shares is fluctuating between 183 and 188.

What is the name of the company discussing the buyback?

The name of the company is 'Aar Industries'.

How does the speaker anticipate the stock price to behave until the record date is announced?

The speaker anticipates that the stock price will continue to hover in the range of 183 to 188 until the record date is announced.

What is the company's financial strategy regarding the buyback?

The company plans to buy back a significant amount of its shares without taking any loans, indicating a strong financial position with sufficient cash reserves.

What is the expected impact of the buyback on the company's financial results?

The buyback is expected to improve the company's financial results due to the purchase of a good quantity of shares at a favorable price.

How does the speaker view the company's performance based on the PNL statement?

The speaker views the company's performance as average, noting a decrease in gross profits and net profits compared to the previous year.

What is the company's current borrowing status, and how might it affect the company's future?

The company currently has a borrowing of 100 crores, which is decreasing, suggesting that the company might become debt-free in the near future.

What is the speaker's overall sentiment towards the company's stock and the buyback?

The speaker has a positive sentiment towards the company's stock and the buyback, expecting a good impact on the company's future and potential for the stock price to rise.