Shanthi Gears Stock Surges 17% on Tube Investments Stake Boost
By Business Desk
Shanthi Gears shares jumped 17% after Tube Investments of India increased its stake to 73.16% via a ₹77.49 crore block deal, boosting investor confidence.
Shanthi Gears shares experienced a significant 17% surge in trading on Friday, directly following an announcement that Tube Investments of India had increased its stake in the gear and gearbox manufacturer. This strategic acquisition pushed Tube Investments’ total shareholding in Shanthi Gears from 70.46% to 73.16%.
The stock opened 14% higher at ₹395 and continued its ascent, hitting an intraday high of ₹456.70 on the National Stock Exchange. By 10:25 AM, shares were trading at ₹445, largely retaining their gains.
Key Acquisition Details
- Share Surge: 17%
- Opening Price: ₹395 (up 14%)
- Intraday High: ₹456.70
- Acquired Shares: 2,064,713 equity shares
- Acquisition Cost: approximately ₹77.49 crore
- New Stake: 73.16% (from 70.46%)
Tube Investments of India executed this transaction through a block deal on the stock exchange, as detailed in an exchange filing. Shanthi Gears, a part of the Chennai-based Murugappa Group, specialises in the design, manufacturing, and repair of various gear components.
Financial Performance Overview
Despite the recent share price momentum, Shanthi Gears reported a substantial decline in its first-quarter earnings for the fiscal year 2027. The company’s profit after tax (PAT) saw a significant reduction compared to the previous year.
- Q1 FY27 PAT: ₹14.17 crore
- Q1 FY26 PAT: ₹30.62 crore
- PAT Decrease: more than 50% year-on-year
- Q1 FY27 Revenue: ₹115.49 crore
- Revenue Decline: nearly 15% year-on-year
- Unexecuted Order Book (as of June 30, 2026): ₹378 crore
- Turnover (as of March 31, 2026): ₹518.72 crore
Technical Outlook and Caution
Virat Jagad, a senior technical research analyst from Bonanza, issued a cautious outlook despite the recent surge. He noted that Shanthi Gears remains in an overall downtrend, marked by consistently forming lower highs and lower lows below key Exponential Moving Averages (EMAs).
Jagad advised against initiating fresh buying positions until the stock sustainably breaches the ₹452–₹455 level, which corresponds to the 200 EMA. For a complete trend reversal, he indicated that the Relative Strength Index (RSI) would need to demonstrate sustained improvement by holding above 60.