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Defence stock hits 5% upper circuit after it acquires Tripathi Aerotech and Weapons Manufacturing Pvt Ltd

Defence manufacturer acquires 55% stake in a defence firm, enhancing capabilities in aerospace and weapons production, leveraging expertise, boosting profitability, and aligning with India's expanding defence market opportunities.
Defence stock surges 5% after strategic acquisition of Tripathi Aerotech for weapons manufacturing!

Introduction:

Leading defence tools manufacturer has acquired a 55% stake in a defence-focused firm, strengthening its portfolio in aerospace and weapons manufacturing. This strategic move boosts its infrastructure, expertise, and market presence in India’s growing defence sector.

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Share price movement of Sunita Tools:

On December 16, 2024, Sunita Tools Ltd opened at ₹644.70, up 5.00% from its previous close of ₹614.00. The stock traded at its day’s high, low, and VWAP of ₹644.70, with a market cap of ₹362.64 crore.

Sunita Tools expands defense:

Sunita Tools Limited has announced the acquisition of a 55% stake in Tripathi Aerotech and Weapons Manufacturing Pvt Ltd. This strategic move enhances its portfolio in aerospace, defence, and weapons manufacturing, with acquisition formalities concluding in 60 days.

The partnership with Shigna Industrial Corporation strengthens Sunita Tools Limited’s capability to produce gun parts, defence components, and artillery shell cases. Leveraging 36 years of technical expertise, the acquisition aligns with India’s growing defence market and global opportunities.

This expansion boosts Sunita Tools Limited’s infrastructure, qualification, and profitability while benefiting subsidiary companies within the group. The collaboration also establishes a stronger presence with defence establishments, marking a significant milestone in the company’s growth.

Ace investor holding in Sunita Tools:

Rajesh Kumar Singla

Rajesh Kumar Singla holds a 1.37% stake in Sunita Tools, owning 77,000 shares valued at ₹5 crore. His investment reflects confidence in the company’s growth trajectory, particularly after its strategic expansion into the defence manufacturing sector.

Rajesh Pandey

Rajesh Pandey holds a 1.10% stake in Sunita Tools, owning 62,000 shares valued at ₹4 crore. His investment underscores trust in the company’s potential, bolstered by its strategic ventures into aerospace and defence manufacturing.

Stock performance of Sunita Tools for Period of 1 week, 6 months and 1 year:

Sunita Tools has delivered robust performance, with a 5.53% return over one week, 15.1% over six months, and an impressive 191% return over the past year, reflecting strong investor confidence and growth potential.

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Shareholding pattern of Sunita Tools:

All values in %Sep 2024Mar 2024
Promoter73.00%73.00%
FII0%0%
DII0.10%0%
Public27.00%27.00%

About Sunita Tools:

Sunita Tools Limited (BSE: 544001) leverages 36+ years of expertise in engineering, specializing in Ground Plates, Mould Bases, and CNC Machining, while expanding into aerospace with strategic acquisitions, driving growth across diverse industrial sectors.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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