Stock Market Today: Small-cap Tyre sector stock gained more than 11% during the intraday trades on Wednesday, despite the GST notice. Here’s what is fueling gains for TVS Srichakra Ltd.’s share price
Small-cap Tyre sector stock TVS Srichakra share price movement
TVS Srichakra share price that opened at ₹3082.10 levels on Wednesday skyrocketed to ₹3410.15, which meant intraday gains of more than 11%. The TVS Srichakra share price has been rising in the last few days.
Factors leading to rise in Small-cap Tyre sector stock TVS Srichakra share price
The TVS Srichakra share price has been rising, helped by ongoing expansions amidst favorable raw material prices, such as that of rubber. Concerns about crude oil prices also have cooled down, and the crude derivative prices also are likely to remain favorable for TVS Srichakra.
TVS Srichakra Expansions— The company recently announced opening two more Eurogrip Tyres exclusive retail stores in Chennai. The exclusive stores will retail tyres, allied automotive products, apart from offering best-in-class services.
The company intends to open additional trademark stores in various places to provide clients with easy access to our goods and services.
These stores will take care of warranty-related procedures in addition to offering services like tyre fitting, tyre care, and puncture repair, as well as extra services like lubricant and engine oil changes.
Eurogrip Tyes presently has exclusive stores in Chennai, Mysore, Ahmedabad, Patna, Farrukhabad, and Hyderabad, and this network is fast expanding.
Favorable key raw material prices—prices of raw materials such as natural rubber, synthetic rubber, and derivatives of crude oil are major components in the production of tyres. Production costs and profit margins are greatly impacted by changes in the prices of these raw materials. The natural rubber price at close to $165 a kg is significantly lower compared to more than $200 a kg, few months back. The crude oil prices that shot up with the Israel-Iran war have cooled down fast post-Israel-Iran ceasefire. to sub-$70 a barrel levels. The same is positive for outlook.
TVS Srichakra GST notice
On the flip side, small-cap Tyre sector stock TVS Srichakra announced having received a demand-cum-show cause notice issued by the Office of the Additional Commissioner of CGST, Dehradun, Uttarakhand. The total demand raised amounts to ₹65.38 crore (Rs. 65,383,559,900), which comprises Tax of 37.548 crore and a penalty of Rs. 27.83.
TVS Srichakra has said that the company does not expect any material financial implication as it believes the demand-cum-show cause notice lacks merit. The discrepancies pointed out by the authority do not consider the responses and reconciliations already submitted by the company.
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