Shares of GNG Electronics Ltd., a small-cap company specializing in refurbished electronics, experienced a significant surge, gaining close to 55% over the past six months. This strong performance culminated in a recent block deal worth approximately Rs 175 crore, attracting substantial interest from both domestic and international institutional investors, including global investment firm Goldman Sachs and Indian financial services giant Motilal Oswal.
Institutional Investors Acquire Stakes in GNG Electronics
The recent block deal saw promoter Vidhi S Khandelwal sell 44.87 lakh shares of GNG Electronics at Rs 390 per share, totaling around Rs 175 crore. A diverse group of prominent buyers participated in this transaction, signaling strong confidence in the company's future prospects.
- Motilal Oswal Equity Opportunities Fund Series II acquired 6.41 lakh shares.
- Other key domestic participants included Mirae Asset Mutual Fund, ITI Mutual Fund, Edelweiss Mutual Fund, and Trust Mutual Fund.
- International interest was evident with Goldman Sachs Asia Equity Portfolio, Mobius Investment Trust Plc, and MCP Emerging Markets Fund LP also purchasing stakes.
Following the news, GNG Electronics shares climbed as much as 8.81% to reach a high of Rs 455 on the BSE before settling slightly lower.
Motilal Oswal Initiates Positive Coverage
Adding to the positive sentiment, Motilal Oswal Financial Services Ltd (MOFSL) recently initiated coverage on GNG Electronics with a positive outlook. The brokerage highlighted the company's leading position in the global refurbished electronics industry and its robust growth potential as key drivers for its optimistic view.
Strong Growth Projections
Motilal Oswal's analysis projects impressive financial growth for GNG Electronics in the coming years. The firm anticipates:
- A 26% Compound Annual Growth Rate (CAGR) in revenue.
- A 31% EBITDA CAGR.
- A 36% PAT CAGR (Profit After Tax) over the FY26-FY28 period.
Based on these projections, Motilal Oswal has issued a 'BUY' rating for GNG Electronics, setting a target price of Rs 635 per share. This target is premised on approximately 30 times the estimated FY28 earnings per share (EPS) and 22 times the enterprise value to EBITDA (EV/EBITDA).
GNG Electronics' consistent performance since its market debut, coupled with this latest round of institutional buying and positive brokerage coverage, reinforces optimism regarding the company's long-term growth trajectory within the expanding refurbished electronics segment.