Shares of leading diversified financial services company Piramal Enterprises Ltd. jumped more than 4 percent on Wednesday ahead of the company's board meeting on July 28 to consider a proposal to buyback shares.
The board will also consider for approval the financial results for the June quarter on Friday.
Companies usually go for share buyback to generate additional shareholder value, drive up share price and distribute profits.
Earlier, in June 2023, the non-bank financial company (NBFC) had announced a final dividend of Rs 31 per share for financial year 2023.
Piramal Enterprises reported a loss of Rs 196 crore for the March quarter of financial year 2023 against a net profit of Rs 109 crore in the year-ago period.
Analysts at Jefferies last month had stated that the stock's risk-reward was attractive at current levels. According to Jefferies, Piramal Enterprises' recent stake sale in Shriram Finance would be slightly value positive. Piramal Enterprises exited Shriram Finance last week after selling over 3 crore shares or 8.3 percent stake in the company.
Shares of Piramal Enterprises are trading 4 percent higher at Rs 1,044.1. The stock has halved from its peak of Rs 2,084.1, but has also recovered over 50 percent from the lows of Rs 630.45. Today's surge has also taken the stock's returns on a year-to-date basis to 24.65 percent. The stock has risen nearly 40 percent over the last three months.
