Gujarat Apollo extends gains, zooms 18% on forming JV with Keestrack

Shares of mining machinery and equipment manufacturer Gujarat Apollo extended their rally to the fifth consecutive day as the scrip jumped nearly 18 per cent in Wednesday's trade. The stock ended at a 20 per cent upper circuit on Tuesday after the company said that it has entered into a joint venture agreement with Belgium-based PFH BV (Keestrack).

Apollo and Keestrack have decided to work jointly and in cooperation with each other for the purpose of carrying on the business of agricultural and farming machinery and components by forming a joint venture company in India, Gujarat Apollo said in a release.

The proposed joint venture will result in increased efficiencies and offer improved products in the market by harnessing each other's synergies, it added.

At 10.41 am, the scrip was trading 8.84 per cent higher to Rs 256.15 over the last day’s closing of Rs 235.35 a piece. The stock has surged nearly 20 per cent in the last one year, while it is up over 32 per cent in the last month.

For the quarter ended June 30 2022, the company had reported consolidated net sales of Rs 29.18 crore, up 292 per cent from the year-ago quarter's net sales of Rs 7.43 crore. The company reported a net profit of Rs 1.51 crore for the latest quarter.