Pavna Industries share price jumped 7% on Thursday, extending its gaining streak for the fourth straight session. The smallcap stock rallied as much as 6.99% to ₹456.65 apiece on the BSE.
The gains in Pavna Industries share price were also supported by strong volumes. Around 31,000 shares of Pavna Industries changed hands on the stock exchanges as compared with its over month average trading volume of 16,000 shares.
The upmove in the smallcap stock also followed a broader rally in the Indian stock market today. The benchmark Sensex gained over 0.3%, while the Nifty 50 traded above 25,100 level.
Recently, the automotive components manufacturer announced the formation of a joint venture with Taiwan based SmartChip Microelectronic Corporation (SMC).
Pavna Industries entered into a joint venture agreement with SmartChip Microelectronic Corporation (SMC), who will offer to undertake and carry on the business of inter alia making electronic components for the automobile industry (ICE & EV) and for other industries like hardware for cupboard / door locks etc. in residential / commercial industries, aero, medical, etc. to Pavna.
Under the agreement, Pavna Industries will bring its operational, manufacturing, and procurement expertise, as well as its deep understanding of the Indian automotive market, to oversee and manage the JV’s operations in India, the company said in a regulatory filing on August 14.
SMC will contribute its present and future technical skills, innovations, and R&D capabilities in automotive e-lock systems, EV components like Motor Controller, Throttle Body, Dashboard for 2W & 3W, EV charging piles, and e-locking solutions for residential and commercial applications, it added.
Pavna Industries will hold 80% equity in the JV, while SMC will hold 20%.
Pavna Industries Share Price Performance
Pavna Industries share price has gained 6% in one month and rallied 11% in three months. The smallcap stock has gained 10% in the past six months, while it has fallen 8% on a year-to-date (YTD) basis. Pavna Industries shares have delivered multibagger returns of 95% in three years and a whopping 450% in five years.
At 11:25 AM, Pavna Industries share price was trading 5.20% higher at ₹449.00 apiece on the BSE.
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